Cane Company manufactures two products called Alpha and Betathat sell for $155 and $115, respectively. Each product uses onlyone type of raw material that costs $6 per pound. The company hasthe capacity to annually produce 110,000 units of each product. Itsaverage cost per unit for each product at this level of activityare given below:
| Alpha | Beta |
| Direct materials | | $ | 24 | | | $ | 12 | |
| Direct labor | | | 23 | | | | 26 | |
| Variable manufacturing overhead | | | 22 | | | | 12 | |
| Traceable fixed manufacturing overhead | | | 23 | | | | 25 | |
| Variable selling expenses | | | 19 | | | | 15 | |
| Common fixed expenses | | | 22 | | | | 17 | |
| Total cost per unit | | $ | 133 | | | $ | 107 | |
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The company considers its traceable fixed manufacturing overheadto be avoidable, whereas its common fixed expenses are unavoidableand have been allocated to products based on sales dollars.
11. How many pounds of raw material are needed to make one unitof each of the two products?
12. What contribution margin per pound of raw material is earnedby each of the two products? (Round your answers to 2decimal places.)
