I really don't understand the relation between Current price + Opportunity cost and maximum price. Maximum price to do what? Break even? Why are we adding profit and a cost together to get a maximum price (cost).

The Foundational 15 [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 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 monufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Eoundational 11-14 4. Assume that Cano's customers would buy a maximum of 80,000 units of Alpha and 60.000 units of Beta. Also assume that the raw naterial avaliable for production is limited to 160,000 pounds. What total contribution margin will it earn? The Foundational 15 [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 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 avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 1113 13. Assume that Cane's customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits? The Foundational 15 [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 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 monufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Eoundational 11-14 4. Assume that Cano's customers would buy a maximum of 80,000 units of Alpha and 60.000 units of Beta. Also assume that the raw naterial avaliable for production is limited to 160,000 pounds. What total contribution margin will it earn? The Foundational 15 [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 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 avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. oundational 1115 5. Assume that Cane's customers would buy a maximum of 80,000 units of Alpha and 60,000 tinits of Beta. Also assume that the raw haterial avaliable for production is limited to 160,000 pounds. If Cane uses its 160,000 pounds of raw materials, up to how much hould it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)