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Required information The Foundational 15 [LO12-2, LO12-3, LO12-4, LO12-5, LO12-6] Part 14 of 15 [The following information applies to the questions displayed below. Cane Company
Required information The Foundational 15 [LO12-2, LO12-3, LO12-4, LO12-5, LO12-6] Part 14 of 15 [The following information applies to the questions displayed below. 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: points Alpha Beta S 32 $16 19 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit eBook 24 10 20 16 $121 Print 12 14 $92 Reference 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. Foundational 12-14 14. Assume that Cane's customers would buy a maximum of 84,000 units of Alpha and 64,000 units of Beta. Also assume that the company's raw material available for production is limited to 166,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials? Total contribution in This is a numeric
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