Styles 2 3 CHAPTER 12 FOUNDATIONAL PROBLEM The information in the first paragraph in the text is to be used to solve problems 1 through 15. The information regarding unit costs is substituted for the information given below. ALFA BETA Variable costs: Direct material. $27 $9 Direct labor... 21 18 Variable manufacturing overhead.. 6 Variable selling expenses.. 10 6 $67 $39 Total per unit variable cost I 18 Traceable fixed manufacturing overhead cost 15 12 14 Common fixed cost. The per unit fixed costs are based on production and sales of 100.000 units. 12. What contribution margin per pound of raw material is earned by each of the two products? 13. Assume that Cane's customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits? 14. If Cane follows your recommendation in requirement 13, what total contribution margin will it earn? 15. If Cane uses its 160,000 pounds of raw materials as you recommended in requirement 13, up to how much should it be willing to pay per pound for additional raw materials