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E FGH Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial

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E FGH Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Prod A Prod B Prosc Sales price $20.00 $24.00 $30.00 Variable costs $14.00 $20.00 $21.60 Contribution margin $6.00 $4.00 $8.40 Material required in pounds 2 1 4 Diverse company only has 1004 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 200 units for product A, 340 units of product B and 160 units of product C. Prod A Prod B Prod C Contribution margin per pound Lbs material needed to meet demand XXX |XXX Most profitable sales mix (in units) X X X

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