Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

Direct materials- Alpha $40 Beta- $24

Direct labor- Alpha- 34 Beta- 28

Variable manufacturing overhead Alpha- 21 Beta-19

Traceable fixed manufacturing overhead Alpha- 29 Beta- 32

Variable selling expenses Alpha- 26 Beta- 22

Common fixed expenses- Alpha- 29 Beta-24

Total cost per unit Alpha- 179 Beta- 149

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

A) How many pounds of raw material are needed to make one unit of each of the two products? Alpha and Beta

B) What contribution margin per pound of raw material is earned by each of the two products? Alpha and Beta

C) Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha and Beta

D) Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. What total contribution margin will it earn?

E) Assume that Canes customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume that the raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?