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Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

Alpha Beta Direct materials $ 32 $15 Direct labor 24 19 Variable manufacturing overhead 1B 9 Traceable fixed manufacturing overhead 2@ 22 Variable selling expenses 16 12 Common fixed expenses 19 14 Total cost per unit $121 $92 [