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Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $ 80.00 $ 66.00 $72.00 Direct materials 24.00 16.50 12.00 Other variable expenses 24.00 33.00 38.40 Total variable expenses 48.00 49.50 50.40 Contribution margin $ 32.00 $ 16.50 $ 21.60 Contribution margin ratio 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 Required 2 Required 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? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin
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