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The Foundational 15 (Algo) (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Meta Direct materials $ 40 $ 24 Direct labor 37 30 Variable manufacturing overhead 24 22 Traceable fixed manufacturing overhead 32 35 Variable selling expenses 29 25 Common fixed expenses 32 27 Total cont per unit $ 194 $ 163 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses ore unavoidable and have been allocated to products based on sales dollars. Foundational 11-13 (Algo) 13. Assume that Cane's customers would buy a maximum of 97.000 units of Alpha and 77,000 units of Beta. Also assume that the raw material available for production is limited to 247,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced Required Information The Foundational 15 (Algo) (LO11-2, LO11-3, LO11-4, LO11-5, LO11-6) The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Deta 40 24 37 30 24 22 32 35 29 25 32 22 $ 194 5163 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. Foundational 11-14 (Algo) 14. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the raw material available for production is limited to 247,000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margin ! Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 tixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 37 24 32 29 32 $ 194 Beta $ 24 30 22 35 25 27 $ 163 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. Foundational 11-15 (Algo) 15. Assume that Cane's customers would buy a maximum of 97,000 units of Alpha and 77,000 units of Beta. Also assume that the company's raw material available for production is limited to 247,000 pounds, ir Cane uses its 247,000 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.) Maximum price to be paid per pound 5 Required Information The Foundational 15 (Algo) (LO11-2, LO11-3, LO11-4, L011-5, LO11-6] (The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 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 Teaceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 37 24 32 29 32 $ 194 Beta $ 24 30 22 35 25 27 $ 163 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. Foundational 11-8 (Algo) 8. Assume that Cane normally produces and sells 77,000 Betss and 97,000 Alphas per year. If Cane discontinues the Beta product line, Its sales representatives could increase sales of Alpha by 12,000 units, What is the financial advantage (disadvantage of discontinuing the Beta product line

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