Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively....

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Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity is 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 Beta $ 24 34 28 21 19 29 32 26 22 29 24 $ 179 $ 149 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. 9. Assume Cane expects to produce and sell 94,000 Alphas during the current year. A supplier offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 94,000 units from the supplier instead of making those units? Financial (disadvantage) 10. Assume Cane expects to produce and sell 69,000 Alphas during the current year. A supplier offered to manufacture and deliver 69,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 69,000 units from the supplier instead of making those units? Financial advantage 11. How many pounds of raw material are needed to make one unit of each of the two products? Pounds of raw materials per unit Alpha Beta 12. What contribution margin per pound of raw material is earned by each of the two products? Note: Round your answers to 2 decimal places. Contribution margin per pound Alpha Beta 13. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the raw material available for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its profits? Units produced Alpha Beta 14. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the raw material available for production is limited to 228,000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margin 15. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the company's raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000 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. Maximum price to be paid per pound Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity is 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 Beta $ 24 34 28 21 19 29 32 26 22 29 24 $ 179 $ 149 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. 9. Assume Cane expects to produce and sell 94,000 Alphas during the current year. A supplier offered to manufacture and deliver 94,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 94,000 units from the supplier instead of making those units? Financial (disadvantage) 10. Assume Cane expects to produce and sell 69,000 Alphas during the current year. A supplier offered to manufacture and deliver 69,000 Alphas to Cane for a price of $136 per unit. What is the financial advantage (disadvantage) of buying 69,000 units from the supplier instead of making those units? Financial advantage 11. How many pounds of raw material are needed to make one unit of each of the two products? Pounds of raw materials per unit Alpha Beta 12. What contribution margin per pound of raw material is earned by each of the two products? Note: Round your answers to 2 decimal places. Contribution margin per pound Alpha Beta 13. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the raw material available for production is limited to 228,000 pounds. How many units of each product should Cane produce to maximize its profits? Units produced Alpha Beta 14. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the raw material available for production is limited to 228,000 pounds. What is the total contribution margin Cane Company will earn? Total contribution margin 15. Assume Cane's customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the company's raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000 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. Maximum price to be paid per pound