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: $85.00 $60.00 $82.00 Direct

image text in transcribed

image text in transcribed

image text in transcribed

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: $85.00 $60.00 $82.00 Direct materials 8.00 53.50 48.00 61.50 $30.60 $12.00 $20.50 27.2015.00 27.20 54.40 Other variable expenses 33.00 Total variable expenses Contribution margin Contribution margin ratio 36% 20 25% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $4 per pound with a maximum of 5,100 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 5,100 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 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 Required 1Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,100 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin Required 2 Required 3

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_2

Step: 3

blur-text-image_3

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

Fundamentals Of Managerial Accounting Version 3.0

Authors: Kurt Heisinger, Joe Ben Hoyle

1st Edition

1453399410, 9781453399415

More Books

Students also viewed these Accounting questions

Question

If the job involves a client load or caseload, what is it?

Answered: 1 week ago