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 Selling price Variable expenses: $86.00 66.00 $76.00 9.00

image text in transcribed

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product Selling price Variable expenses: $86.00 66.00 $76.00 9.00 25.80 25.80 51.60 Direct materials 18.00 31, 31.50 44.20 53:20 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 49.50 53: $34.40 16.50 $22.80 40% 25% 30% The company estimates that it can sell 950 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 5,000 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 5,000 pounds of materials? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) duct BProduct Contribution margin per pound of the constraining resource Required 1 Required 2>

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

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Ph.D. Sangster, Alan

12th Edition

0273767925, 9780273767923

More Books

Students also viewed these Accounting questions

Question

What is the message frequency?

Answered: 1 week ago

Question

What is the schedule for this project?

Answered: 1 week ago

Question

Who is responsible for this project?

Answered: 1 week ago