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Accounting

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Required information
[The following information applies to the questions displayed below.]
Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product
uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000
units of each product. Its average cost per unit for each product at this level of activity is given below:
The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are
unavoidable and have been allocated to products based on sales dollars.
Assume Cane's customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume the company's
raw material available for production is limited to 160,000 pounds. If Cane uses its 160,000 pounds of raw materials, up to how much
should it be willing to pay per pound for additional raw materials?
Note: Round your answer to 2 decimal places.
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