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A company manufactures three products-A, B, and C. The selling price variable costs, and contribution margin for one unit of each product follow A $180

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A company manufactures three products-A, B, and C. The selling price variable costs, and contribution margin for one unit of each product follow A $180 Product 3 $ 280 $240 Selling price Variable expenses Direct materials Other variable experies Total variable expenses Cortion margin Contribution margin to 24 102 126 BO 100 180 148 180 $ 60 25 % $ 54 $ 900 30% 3571% The same raw material is used in all three products. The company has only 6.600 pounds of raw material on hand and will not be able to obtain any more of 1 for several weeks due to a strike in its suppler's plant Management is trying to decide which products to concentrate on next week in filing its backlog of orders. The material costs $8 per pound. A foreign supplier could furnish the company with additional stocks of the raw material at a substantial premium over the usual price. Assuming the company's estimated customer demand is 500 units per product line and that the company has used its 6,600 pounds of raw material in an optimal fashion, what is the highest price the company should be willing to pay for an additional pound of materials? Multiple Choice O $25 O $10 $18 Help Sa A B $ 240 $180 $ 280 Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 24 102 126 $ 54 80 100 180 148 180 $ 100 $ 60 30% 35.71% 25 % The same raw material is used in all three products. The company has only 6,600 pounds of raw material on hand and will not be able to obtain any more oft for several weeks due to a strin its supp plant Management is trying to decide which products) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound. A foreign supplier could furnish the company with additional stocks of the raw material at a substantial premium over the usual price. Assuming the company's estimated customer demand is 500 uni product line and that the company has used its 6,600 pounds of raw material in an gatimal fashion, what is the highest price the company should be willing to pay for an additional pound of materials? Multiple Choice $25 $10 a $18 524

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