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): Selling price. Variable expenses: Direct materials Other variable expenses

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price. Variable expenses: Direct materials Other variable expenses Total variable expenses. Contribution margin. Contribution margin ratio. $ 80.00 Product B $66.00 C $ 72.00 24.00 16.50 12.00 24.00 33.00 38.40 48.00 $ 32.00 49.50 50.40 $16.50 $21.60 40% 25% 30% The company estimates that it can sell 700 units of each product per month. The same raw material is used in each product. The material costs $3 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? Complete this question by entering your answers in the tabs below.. Required 1 Required 2 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal. places.) Contribution margin per pound of the constraining resource Product A Product B Product C Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit) Product 8 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio. A $ 80.00 $ 66.00 $ 72.00 24.00 16.50 12.00 24.00 33.00 38.40 48.00 $32.00 49.50 50.40 $16.50 $21.60 40% 25% Jex The company estimates that it can sell 700 units of each product per month. The same raw material is used in each product. The material costs $3 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? Complete this question by entering your answers in the tabs below. Required 17 Required 2 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

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

Introduction To Management Accounting

Authors: Charles T. Horngren, Gary Sundum, Gary L. Sundem

8th Edition

0134870751, 978-0134870755

More Books

Students also viewed these Accounting questions