[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alph

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[The following information applies to the questionsdisplayed below.]
Cane Company manufactures two products called Alpha and Betathat sell for $185 and $120, respectively. Each product uses onlyone type of raw material that costs $5 per pound. The company hasthe capacity to annually produce 112,000 units of each product. Itsaverage cost per unit for each product at this level of activityare given below:
The company considers its traceable fixed manufacturing overheadto be avoidable, whereas its common fixed expenses are unavoidableand have been allocated to products based on sales dollars.
15. Assume that Cane’s customers would buy a maximum of 88,000units of Alpha and 68,000 units of Beta. Also assume that thecompany’s raw material available for production is limited to172,000 pounds. If Cane uses its 172,000 pounds of raw materials,up to how much should it be willing to pay per pound for additionalraw materials?