Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product $90.00 $57.00 $ 80.00 Selling price Variable expenses

image text in transcribed
image text in transcribed
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 $90.00 $57.00 $ 80.00 Selling price Variable expenses : Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 28.80 28.80 57.60 $32.40 368 18.00 21.90 39.90 $17.10 8.00 48.00 56.00 $24.00 308 308 The company estimates that it can sell 900 units of each product per month. The same raw material is used in each product. The material costs $4 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Product Product B Product C Contribution margin per pound of the constraining resource Required Required 2 > Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or c? Which orders second? Third? Product A Product B Product C Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optim of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Essays On The Quality Of Audited Financial Statements

Authors: Ulf Mohrmann

1st Edition

3832541853, 978-3832541859

More Books

Students also viewed these Accounting questions

Question

Differentiate 3sin(9x+2x)

Answered: 1 week ago

Question

Compute the derivative f(x)=(x-a)(x-b)

Answered: 1 week ago