Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107000 units of each product. Its unit costs for each product at this level of activity are given below Alpha Beta $30 10 Direct materials Direct labor Varlable manufacturing overheed Traceable foed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unt 10 23 13 15 $125 S 91 25 12 21 17 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Assume that Cane expects to produce and sell 55,000 Alphas during the current year. A supplier has offered to manufacture and deliver 55,000 Alphas to Cane for a price of $100 per unit. If Cane buys 55,000 units from the supplier instead of making those units, how much will profits increase or decrease? rofit How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta? Alpha Beta Pounds of raw materials per unit