$ 92.00 Product B $ 66.00 C $ 82.00 27.60 27.60 55.20 $36.80 400 18.00 31.50 49.50 $ 16.50 12.00 45.40 57.40 $ 24.60 30 25 Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. (Hint: Use the DM cost in the table and the cost of the material per pound to figure out how many pounds are used by each product) 2. Which orders would you advise the company to accept first, those for A, B, or c? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials? (See hint below.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Product A Product B Product Contribution margin per pound of the constraining resource 21.00 55.20 $36.80 31.50 49.50 45.40 57.40 $ 24.60 $ 16.50 40 254 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 308 The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. (Hint: Use the DM cost in the ta the cost of the material per pound to figure out how many pounds are used by each product.) 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds materials? (See hint below.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or c? Which orders second? Third? Product A Product B Product C 27.00 55.20 $ 36.80 31.50 49.50 $ 16.50 45.40 57.40 $ 24.60 403 25 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 301 The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. T material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. (Hint: Use the DM cost in the tab the cost of the material per pound to figure out how many pounds are used by each product.) 2. Which orders would you advise the company to accept first, those for A, B, or c? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials? (See hint below.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin
