Required information [The following information applies to the questions displayed below] Cane Company manufactures two

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Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 1 (70.56 KiB) Viewed 32 times

Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 2 (62.48 KiB) Viewed 32 times

Required Information The Following Information Applies To The Questions Displayed Below Cane Company Manufactures Two 3 (69.68 KiB) Viewed 32 times

Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Units produced Alpha $ 40 30 18 26 Alpha 23 26 $163 Beta Beta $ 15 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. 1506 13. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the company's raw material available for production is limited to 225,000 pounds. How many units of each product should Cane produce to maximize its profits? 30 16 29 -19 21 $130

0 Required information [The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 30 co Total contribution margin 18 26 23 26 $163 Beta $ 15 30 16 29 506 91 -19 21 $130 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. 14. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the company's raw material available for production is limited to 225,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $40 30 18 26 23 26 $163 Maximum price to be paid per pound Beta $ 15 30 16 29 -19 21 $130 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. 15. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the company's raw material available for production is limited to 225,000 pounds. If Cane uses its 225,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)