Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JSON-1274 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: Direct
JSON-1274 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses C Contribution margin Contribution margin ratio X5 $ 90.00 O $40,300 O $21,600 O $16,200 O$ 37,800 28.80 28.80 57.60 $ 32.40 36% Product Y8 $ 57.00 18.00 21.90 39.90 $ 17.10 30% Z9 $ 80.00 8.00 48.00 56.00 $ 24.00 30% JSON-1274 has enough demand to sell 900 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $4 per pound. The company will at most have 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-1274 can earn per month using its 5,400 pounds of direct materials optimally?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started