Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

	alpha	beta
direct materials	$25	$10
direct labor	22	21
variable manufacturing overhead	17	7
traceable fixed manufacturing overhead	18	20
variable selling expenses	14	10
common fixed expenses	17	12
total cost per unit	$113	$80

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.

Questions: (Please show all work/steps)

11. How many pounds of raw material are needed to make one unit of each of the two products?

	alpha	beta
pounds of raw materials per unit	?	?

12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.

	alpha	beta
contribution margin per pound	?	?

13. Assume that Canes customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the companys raw material available for production is limited to 162,000 pounds. How many units of each product should Cane produce to maximize its profits?

	alpha	beta
units produced	?	?

14. Assume that Canes customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the companys raw material available for production is limited to 162,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

15. Assume that Canes customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the companys raw material available for production is limited to 162,000 pounds. If Cane uses its 162,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)