sconnect The Foundational 15 Cane Company manuf respectively. Each pany has the capacit for each product at any manufactures two products called Alpha and Beta that sell for $120 and $80. els. Each product uses only one type of raw material that costs $6 per pound. The com capacity to annually produce 100,000 units of each product. Its average cost per unit product at this level of activity are given below: L012-2, L012-3, L012-4, 012-5, L012-6 Chapter 12 Foundational Problem ALPHA BETA $18 $24 UNIT COSTS(based on production of 100,000 units of each product). DIRECT MATERIAL DIRECT LABOR VARIABLE OVERHEAD VARIABLE SALES TRACEABLE FIXED COMMON FIXED COST $120 $80 ADDITIONAL INFORMATION SELLING PRICE PER UNIT MATERIAL COST PER POUND The company considers its traceable fixed cost to be avoidable. whereas its common fixed expenses are unavoidabel. The company considers its traceable fixed considers its traceable fixed manufacturing overhead to be avoidable, whereas its on fixed expenses are unavoidable and have been allocated to products based on sales dollars Arquired: (Answer each question independently unless instructed otherwise II. How many puulus Ulm 12. What contribution margin per pound of raw material is earned by each of the two Brodu 13. Assume that Cane's customers would buy a maximum of 80,000 units of Alpha and 60 units of Beta. Also assume that the raw material available for production is limited to 160.000 pounds. How many units of each product should Cane produce to maximize its profits? 14. If Cane follows your recommendation in requirement 13, what total contribution margin will it eam 15. If Cane uses its 160,000 pounds.com materials as you recommended in requirement 13 to how much should it be willing to pay per pound TOT TUTUTUMU Taw materials