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Course X Homer X M Inbox If X Poting X Select x 4 Quot X 2 50 To X Gradel X ezto.mheducation.com/ext/map/index.html?_con-con&external browser=04launchUrl=hups*253A%252F%:252Fblackboard, oflaw.edu: 252F
Course X Homer X M Inbox If X Poting X Select x 4 Quot X 2 50 To X Gradel X ezto.mheducation.com/ext/map/index.html?_con-con&external browser=04launchUrl=hups*253A%252F%:252Fblackboard, oflaw.edu: 252F ulug~:262_ _] Chapter 7 Case Study O Steed Help 13 Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product Part 13 of 15 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 Data Direct materials 25 $ 10 Direct labor 22 Variable manufacturing overhead Traceable fixed manufacturing overhead 18 Variable selling expenses 14 common fixed expenses 12 Total cost per unit 113 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. 13. Assume that Cane's customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta, Also assume that the 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 Units produced
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