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JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: X5
JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: X5 $ 90.00 27.00 Product Y8 $ 66.00 18.00 Z9 $ 80.00 Direct materials 9.00 Other variable expenses 27.00 31.50 Total variable expenses 54.00 Contribution margin $ 36.00 49.50 $ 16.50 47.00 56.00 $ 24.00 Contribution margin ratio 40% 25% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? $31,200 $ 33,700 $ 16,800 $14,400
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