Haresh vala Required informationThe 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 $155 and $115, respectively. Each productuses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 242322231922Maximum price to be paid per poundDeta122612251517$133 107The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare 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 87,000 units of Alpha and 67,000 units of Beta. Also assume that thecompany's raw material available for production is limited to 168,000 pounds. If Cane uses its 168,000 pounds of raw materials, up tohow much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

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 $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direet materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $24 23 22 23 Bota #12 26 12 25 15 19 22 $133 107 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 87,000 units of Alpha and 67,000 units of Beta. Also assume that the company's raw material available for production is limited to 168,000 pounds. If Cane uses its 168,000 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

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 31P: Jonfran Company manufactures three different models of paper shredders including the waste...