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Required information [The following information applies to the questions displayed below.) Part 12 of 15 Part 12 011 Cane Company manufactures two products called Alpha
Required information [The following information applies to the questions displayed below.) Part 12 of 15 Part 12 011 Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 8 00:37:55 Alpha $ 30 23 Beta $18 16 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 15 11 18 13 $ 87 $115 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. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Contribution margin per Alpha $ 57.00 Beta $ 42.00 pound Required information [The following information applies to the questions displayed below.] Part 13 of 15 Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: 8 00:37:59 Alpha $ 30 Beta $18 16 23 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 15 13 18 $115 $ 87 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. 13. Assume that Cane's customers would buy a maximum of 83,000 units of Alpha and 63,000 units of Beta. Also assume that the raw material available for production is limited to 200,000 pounds. How many units of each product should Cane produce to maximize its profits? Answer is complete but not entirely correct. Units produced Alpha 37,800 Beta 3,667
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