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Required information The Foundational 1 5 ( Algo ) [ LO 1 3 - 2 , LO 1 3 - 3 , LO 1 3
Required information The Foundational AlgoLO LO LO LO LO Skip to question The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $ and $ respectively. Each product uses only one type of raw material that costs $ per pound. The company has the capacity to annually produce units of each product. Its average cost per unit for each product at this level of activity is given below: Alpha Beta Direct materials $ $ Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit $ $ The companys traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational Algo Assume Canes customers would buy a maximum of units of Alpha and units of Beta. Also assume the companys raw material available for production is limited to pounds. If Cane uses its pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials?
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