Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

JSON-6037 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Selling price

image text in transcribed

JSON-6037 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 92.00 $ 66.00 Z9 $ 82.00 27.60 18.00 12.00 27.60 55.20 31.50 49.50 45.40 57.40 $ 36.80 $ 16.50 $ 24.60 40% 25% 30% JSON-6037 has enough demand to sell 950 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 6,100 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6037 can earn per month using its 6,100 pounds of direct materials optimally? $ 35,070 $ 32,570 O $ 23,370 $ 9,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Excel & Access for Accounting 2010

Authors: Glenn Owen

3rd edition

1111532672, 978-1111532673

More Books

Students also viewed these Accounting questions