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Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $ 92.00 $ 66.00 $ 82.00 Direct materials Total variable expenses Other variable expenses Contribution margin 27.60 27.60 18.00 12.00 55.20 31.50 49.50 45.40 57.40 $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 258 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 6,100 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 6,100 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.) Contribution margin per pound of the constraining resource Product A Product B Product C < Required 1 Required 2 > 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 6,100 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 < Required 1 Required 3 > 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 6,100 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 6,100 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin < Required 2 Required 3 >
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