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Cannon Corp manufactures three products: X, Y, and Z. The selling price, variable costs, and contribution margin for one unit of each product follow: The
Cannon Corp manufactures three products: X, Y, and Z. The selling price, variable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three products. Cannon Corp has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound. A foreign supplier could furnish Cannon with additional stocks of the raw material at a substantial premium over the usual price. Assuming Cannon's estimated customer demand is 500 units per product line and that the company has used its 6,000 pounds of raw material in an optimal fashion, the highest price Cannon Company should be willing to pay for an additional pound of materials is \$ [maxcost]? 12 14 16 18
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