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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 are given below:The company considers its traceable fixed manufacturing overhead to be avoldable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
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Assume that Cane's customers would buy a maximum of units of Alpha and units of Beta. Also assume that the raw materlal avallable for production is limited to pounds. What is the total contribution margin Cane Company will earn?
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