Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha				Beta
Direct materials		$	40			$	15
Direct labor			34				28
Variable manufacturing overhead			22				20
Traceable fixed manufacturing overhead			30				33
Variable selling expenses			27				23
Common fixed expenses			30				25
Total cost per unit		$	183			$	144

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 95,000 units of Alpha and 75,000 units of Beta. Also assume that the companys raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?

14.

Assume that Canes customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also assume that the companys raw material available for production is limited to 245,000 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 95,000 units of Alpha and 75,000 units of Beta. Also assume that the companys raw material available for production is limited to 245,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)