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Question 29 2 pts The following data is used for all Crane company questions. (identical aside from the required) Crane Company manufactures two products called
Question 29 2 pts The following data is used for all "Crane company" questions. (identical aside from the required) Crane 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 unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $30 $12 Direct labor 20 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 15 10 Total cost per unit $100 $68 All traceable FC are avoidable Required: Assume that Crane's customers would buy a maximum of 80.000 units of Alpha and 60.000 units of Beta. Also assume that the company's raw material available for production is limited to 160,000 pounds. How many units of each product should Crane produce to maximize its profits? Note: ROUND TO WHOLE NUMBER. DO NOT use units or spaces in your answer! Alpha: Beta: Question 30 1 pts The following data is used for all "Crane company" questions. (identical aside from the required) Crane 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 unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $30 $ 12 Direct labor 2015 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $100 $68 All traceable FC are avoidable Required: Assume that Crane's customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company's raw material available for production is limited to 160,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? Note: Show answer to two decimal places. Do NOT use $ or spaces in your answer! (e.g., 11.35)
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