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Chapter 12 Pre-Lab Problem 6 Saved Help Save & Exit Submit Check my work 15 Required information Part 15 of 15 [The following information applies to the questions displayed below Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: points Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead ariable selling expenses Common fixed expenses Total cost per unit $ 42 35 23 31 28 31 AlphaBeta $ 21 28 21 34. 24 26 eBook Puril $198 $154 References 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. 15. Assume that Cane's customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the company's raw material available for production is limited to 246,000 pounds. If Cane uses its 246,000 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.) price to per Mc Graw Hill Prey 15 of 15 Next >

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