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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 $ 70 $ 75 $ 85
Variable costs per unit:
Direct materials 162420
Direct labor 402832
Variable overhead 223
Total variable cost per unit 585455
Contribution margin per unit $ 12 $ 21 $ 30
The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct material cost is $8.00 per pound. The company has only 4,000 pounds of direct materials available for production. Assuming the company has made optimal use of its 4,000 pounds of direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials?
Multiple Choice
$14.00
$20.00
$15.00
$16.00

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