Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): A $88.00 Product B $72.00 $78.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 18.00 36.00 54.00 $18.00 254 9.00 45.60 54.60 $23.40 30% 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 $3 per pound with a maximum of 6,000 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 6,000 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.) Product A Product B Product C Contribution margin per pound of the constraining resource Required 1 Required 2 > Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A B $88.00 $72.00 $78.00 18.00 9.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 54.00 $18.00 25% 54.60 $23.40 308 405 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 $3 per pound with a maximum of 6,000 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 6,000 pounds of materials? Complete this question by entering your answers in the tabs below. 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 Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A B $88.00 $72.00 $78.00 18.00 9.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 54.00 $18.00 25% 54.60 $23.40 308 405 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 $3 per pound with a maximum of 6,000 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 6,000 pounds of materials? Complete this question by entering your answers in the tabs below. 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 Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product AB $88.00 $72.00 $78.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 26.40 26.40 52.80 $35.20 40% 18.00 36.00 54.00 $18.00 25% 9.00 45.60 54.60 $23.40 303 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 $3 per pound with a maximum of 6,000 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 6,000 pounds of materials? 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 optimal use of its 6,000 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin Required 2 Required 3 Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $50,000 per ton, one-fourth of which is allocated to product X15. Seven thousand seven hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $6,200 and then sold for $23 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? 2. Product X15 should be
