Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product Selling price $ A 110 $ 90

image text in transcribed
image text in transcribed
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product Selling price $ A 110 $ 90 $ 100 Variable expenses: Direct materials Other variable expenses 33.00 33.00 27.00 40.50 7.00 63.00 Total variable expenses 66.00 67.50 70.00 Contribution margin $44.00 $22.50 $30.00 Contribution margin ratio 40% 25% 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 6,000 pounds available each month. Required: a. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.) Contribution Margin per Pound Product A Product B Product C b. Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third? Product A Product B Product C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions