Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 112,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

	Alpha	Beta
Direct materials	$ 30	$ 10
Direct labor	22	29
Variable manufacturing overhead	20	13
Traceable fixed manufacturing overhead	24	26
Variable selling expenses	20	16
Common fixed expenses	23	18
Total cost per unit	$ 139	$ 112

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

15. Assume that Canes customers would buy a maximum of 88,000 units of Alpha and 68,000 units of Beta. Also assume that the companys raw material available for production is limited to 172,000 pounds. If Cane uses its 172,000 pounds of raw materials, up to how much shoul