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help 13 Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, L011-5, LO11-6] [The following information applies to the questions cisplayed below.] Cane Company manufactures
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Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, L011-5, LO11-6] [The following information applies to the questions cisplayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 11-13 (Algo) 13. Assume that Cane's customers would buy a maximum of 87,000 units of Alpha and 67,000 units of Beta. Also assume that the raw material available for production is limited to 168,000 pounds. How many units of each product should Cane produce to maximize its profits Step by Step Solution
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