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Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit) Product $70 $50 $60 Selling price Variable expenses
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit) Product $70 $50 $60 Selling price Variable expenses 4.20 37.80 42.00 $18.00 Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 21.00 21.00 42.00 $28.00 15.00 22.50 37.50 $12.50 40% 26% 30 % Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $6 per pound with a maximum of 5,600 pounds available each month
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