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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 avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
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How many pounds of raw materlal are needed to make one unit of each of the two products?
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