Required information The following information applies to the questions displayed below) Cane Company manufactures two...
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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 $240 and $162, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 131000 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 Connon fixed expenses Total cost per unit Alpha $_35 48 27 35 32 35 $212 Beta $ 15 23 25 38 28 $159 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. 13. Assume that Cane's customers would buy a maximum of 100,000 units of Alpha and 80,000 units of Beta. Also assume that the raw material available for production is limited to 261.000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced
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