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Benoit Company produces three products - A , B , and C . Data concerning the three products follow ( per unit ) :
Benoit Company produces three productsA B and C Data concerning the three products follow per unit:
tableProduct,,,ABCSelling price,$$$Variable expenses:,,,,,, Direct materials, Other variable expenses,Total variable expenses,Contribution margin,$$$Contribution margin ratio,
The company estimates that it can sell units of each product per month. The same raw material is used in each product. The material costs $ per pound with a maximum of pounds available each month.
Required:
Calculate the contribution margin per pound of the constraining resource for each product.
Which orders would you advise the company to accept first, those for A B or C Which orders second? Third?
What is the maximum contribution margin that the company can earn per month if it makes optimal use of its pounds of materials?
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Calculate the contribution margin per pound of the constraining resource for each product. Round your answers to decimal places.
tableProduct AProduct BProduct Cmargin per pound of the constraining resource,,,
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