日Required Informatlon[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each productuses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000units of each product. Its average cost per unit for each product at this level of activity are given belowAlpha$ 42Beta$424Direct materialsDirect laborVariable manufacturing overhead,Traceable fixed manufacturing overheadVariable selling expensesCommon fixed expenses42.34313427$173The 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.13. Assume that Cane's customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the rawmaterial available for production is limited to 344,000 pounds. How many units of each product should Cane produce to maximize itsprofits?AlphaBetaUnits producedPrev13 14 15Next hof 15to search近。

Answer: Particulars Alpha Beta Units Produced 4,000 units 79,000 units

Answered: 3. Assume that Cane's customers would…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. Assume that Cane's customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to 344,000 pounds. How many units of each product should Cane produce to maximize its profits? Alpha Beta Units produced