Question
JSON-3721 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: X5 Product Y8 Selling
JSON-3721 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: X5 Product Y8 Selling price $ 90.00 $ 60.00 Z9 $ 80.00 Variable expenses: Direct materials 27.00 18.00 9.00 Other variable expenses 27.00 27.00 47.00 Total variable expenses 54.00 45.00 56.00 Contribution margin $ 36.00 $ 15.00 $ 24.00 Contribution margin ratio 40% 25% 30% JSON-3721 has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-3721 can earn per month using its 5,400 pounds of direct materials optimally? $ 30,600 $ 12,600 $ 33,100 $ 18,000
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