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JSON-8617 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Selling price
JSON-8617 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 X5 $ 84.00 $ 70.00 Z9 $ 74.00 25.20 21.00 9.00 Other variable expenses 25.20 Total variable expenses 50.40 Contribution margin. $ 33.60 31.50 52.50 $ 17.50 42.80 51.80 $ 22.20 Contribution margin ratio 40% 25% 30% JSON-8617 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-8617 can earn per month using its 5,400 pounds of direct materials optimally? $ 16,650 $29,250 $31,750 $ 12,600
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