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JSON-6651 Inc. produces Products X5, Y8, and 29. The following table provides per unit information relating to the three products: Product Y8 29 Selling
JSON-6651 Inc. produces Products X5, Y8, and 29. The following table provides per unit information relating to the three products: Product Y8 29 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 90.00 $ 57.00 $ 80.00 28.80 18.00 8.00 28.80 57.60 21.90 39.90 48.00 56.00 $ 32.40 $ 17.10 $ 24.00 368 30% 30% JSON-6651 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-6651 can earn per month using its 5,400 pounds of direct materials optimally? O $ 37,800 O $ 21,600 O$ 16,200 $ 40,300
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