Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B Selling price. variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A C $ 84.00 $ 70.00 $ 74.00 25.20 25.20 50.40 $ 33.60 408 21.00 31.50 52.50 $ 17.50 258 9.00 42.80 51.80 $ 22,20 30% The company estimates that it can sell 750 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? 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? Complete this question by entering your answers in the tabs below. 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.) 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 B Selling price. variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A C $ 84.00 $ 70.00 $ 74.00 25.20 25.20 50.40 $ 33.60 408 21.00 31.50 52.50 $ 17.50 258 9.00 42.80 51.80 $ 22,20 30% The company estimates that it can sell 750 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? 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? Complete this question by entering your answers in the tabs below. 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.) Contribution margin per pound of the constraining resource Product A Product B Product C
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2007 the Parkway Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to its employees, resulting in an unrecognized prior service cost...
-
For pipe flow, can you give a simplified form of the Reynolds transport equation?
-
List the engineering and design factors that serve to enhance combustion in an incinerator.
-
Identify the control weaknesses depicted in the flowchart forProblem. INTERNAL CONTROL EVALUATION Customer Sales Department Billing Accounts Receivable Warehouse General Ledger Ladgor 80 Stock Sios...
-
Turpentine flows through a pipe that has a change in height of 1.80 m and a diameter changing from 21.5 cm at the top and 21.9 cm at the bottom. If at the top the velocity is 13.3 m/s and the...
-
You are a market maker for options on a stock index. You have just written 100 European put options on the stock index with a strike price of KPut = 35 that expires in 360 days. You have decided to...
-
Consider N classical harmonic oscillators with coordinates and momenta {qi, p;}, and subject to the Hamiltonian N - 2 Pi [ + 2m 2 H(qi,pi) = mwq (a ) Calculate the entropy S as function of the total...
-
Task 1: Interference of waves 1. Using the two-dimensional wave interference pattern shown, a ruler and the two equations involving wave path difference, complete the following. 1. Measure the...
-
Discuss what teamwork means to you in any work environment. Discuss two situations in which teamwork promote the above statement in any healthcare setting.
-
Exercise 8-52 (Algo) Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5, 6) Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and...
-
GoodGro Inc. makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely trademark infringement. patent...
-
\table[[\table[[Market],[Structure]],\table[[Number of],[Firms]],\table[[Type of],[Product Sold]],\table[[Price],[Taker?]],Price Formula,\table[[Freedom of],[Entry?]],\table[[Short-run],[Profit?]],\ta
-
Qualitative variables may be incorporated into a regression model by using Slack variables Random variables Dummy variables Heteroscedastic variables None of the above pg85
-
Herman Quilly is the cost accountant for the Lockwood Corporation. In attempting to perform a Monte Carlo simulation, to assess the profitability of one of the firms product lines, he has estimated...
-
Using Monte Carlo simulation, the Capp Company found the following probability distribution for the net present value of a project that it is evaluating: pg52 NPV Probability -$50,000 .10 -25,000 .30...
Study smarter with the SolutionInn App