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JSON-8741 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: X5 Product Y8 Z9
JSON-8741 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: X5 Product Y8 Z9 Selling price Variable expenses: $90.00 $ 57.00 $ 80.00 Direct materials 28.80 18.00 8.00 Other variable expenses 28.80 21.90 48.00 Total variable expenses 57.60 39.90 56.00 Contribution margin $ 32.40 $ 17.10 $ 24.00 Contribution margin ratio 36% 30% 30% JSON-8741 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-8741 can earn per month using its 5,400 pounds of direct materials optimally? $16,200 $ 21,600 $40,300 $ 37,800
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