Cane Company manufactures two products called Alpha and Beta that sell for $195

Question

Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below:

How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below:

Explanation / Answer

solution Alpha Beta   Pounds of raw materials per unit 8 3 (direct material cost per product / direct material cost per pound (40/5) (15/5)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.