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Assume that a company makes three products Product A , Product B , and Product C and provides the following information with respect to those
Assume that a company makes three productsProduct A Product B and Product Cand provides the following information with respect to those products:
Product A Product B Product C
Selling price $ $ $
Variable costs per unit:
Direct materials
Direct labor
Variable overhead
Total variable cost per unit
Contribution margin per unit $ $ $
The company incurs total fixed costs of $ The maximum demand for each of its products is units. Its direct material cost is $ per pound. The company has only pounds of direct materials available for production. Assuming the company has made optimal use of its pounds of direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials?
Multiple Choice
$
$
$
$
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