expercise 12-12 chapter 12

Exercise 12-12 Volume Trade-Off Decisions (L012-5) Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unity A $75.00 Product $64.ee $66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 22.50 22.50 45.00 $30.00 40 15.00 33.00 48.00 $16.00 25% 12.00 34.2 16.20 $19.80 30% The company estimates that 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 5,400 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 5,400 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.) Product A Product B Product 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 Product C Required Required 2 Required 3 What is the maximum contribution margin that the company can earn per month in it makes optimal use of its 5,400 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin