[The following information applies to the questions displayed below.]

Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 118,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha				Beta
Direct materials		$	36			$	24
Direct labor			32				27
Variable manufacturing overhead			19				17
Traceable fixed manufacturing overhead			27				30
Variable selling expenses			24				20
Common fixed expenses			27				22
Total cost per unit		$	165			$	140

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

11. How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

Alpha Beta

Pounds of raw materials per unit

12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)

Alpha Beta

Contribution margin per pound

13. Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. How many units of each product should Cane produce to maximize its profits?

Alpha Beta

Units produced

14. Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

Total contribution margin=

15. Assume that Canes customers would buy a maximum of 92,000 units of Alpha and 72,000 units of Beta. Also assume that the companys raw material available for production is limited to 300,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Maximum price to be paid per pound=