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Pole Company manufactures two products called Tap and Bounce that sell for $360 and $240, respectively. Each product uses only one type of raw material

Pole Company manufactures two products called Tap and Bounce that sell for $360 and $240, respectively. Each product uses only one type of raw material that costs $18 per pound. The company has the capacity to annually produce 300,000 units of each product. Its unit costs for each product at this level of activity are given below:

Tap Bounce

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90 $36

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 45

Variable manufacturing overhead. . . . . . . . . . . . . 21 15

Traceable fixed manufacturing overhead. . . . . . . 48 54

Variable selling expenses. . . . . . . . . . . . . . . . . . . 36 24

Common fixed expenses. . . . . . . . . . . . . . . . . . . . 45 30

Total cost per unit. . . . . . . . . . . . . . . . . . . . . . . . . . $300 $204

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.

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What contribution margin per pound of raw material is earned by Tap and Bounce?

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