Exercise $13-13($Algo$)$ Volume Trade$-$off Decisions $[$LO$13-5]$

Benoit Company produces three products$-$A$,$ B$,$ and C$.$ Data concerning the three products follow $($per unit$)$:

The company estimates it can sell $900$ 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 $6,000$ pounds available each month.

Required:

Calculate the contribution margin per pound of the constraining resource for each product.

Which orders would you advise the company to accept first, those for $A,B,$ or $C?$ Which orders second? Third?

What is the maximum contribution margin the company can earn per month if it makes optimal use of its $6,000$ pounds of materials?

Complete this question by entering your answers in the tabs below.

Calculate the contribution margin per pound of the constraining resource for each product.

Note: Round your answers to $2$ decimal places.