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Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 86.00 $66.00 C $76.00 30 Selling
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 86.00 $66.00 C $76.00 30 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 25.80 25.80 51.60 $34.40 40% 18.00 31.50 49.50 $16.50 25% 9.00 44.20 53.20 $22.80 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 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 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 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 5,000 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin
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