Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha				Beta
Direct materials		$	30			$	15
Direct labor			26				22
Variable manufacturing overhead			13				11
Traceable fixed manufacturing overhead			22				24
Variable selling expenses			18				14
Common fixed expenses			21				16
Total cost per unit		$	130			$	102

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.

13.

Assume that Canes customers would buy a maximum of 86,000 units of Alpha and 66,000 units of Beta. Also assume that the companys raw material available for production is limited to 210,000 pounds. How many units of each product should Cane produce to maximize its profits?

	Alpha	Beta
Units produced

15.

Assume that Canes customers would buy a maximum of 86,000 units of Alpha and 66,000 units of Beta. Also assume that the companys raw material available for production is limited to 210,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Maximum price to be paid per pound