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JSON-6335 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Z9 Selling
JSON-6335 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Z9 Selling price Variable expenses: X5 $ 86.00 $ 66.00 $ 76.00 Direct materials 25.80 18.00 9.00 Other variable expenses 25.80 31.50 44.20 Total variable expenses 51.60 49.50 53.20 Contribution margin $ 34.40 $ 16.50 $ 22.80 Contribution margin ratio 40% 25% 30% JSON-6335 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 5,000 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6335 can earn per month using its 5,000 pounds of direct materials optimally? $ 32,760 $8,600 O $ 21,660 $ 30,260
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