Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

JSON-8898 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: ProductX5Y8Z9Selling price$ 85.00$ 60.00$ 82.00Variable

JSON-8898 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products:

ProductX5Y8Z9Selling price$ 85.00$ 60.00$ 82.00Variable expenses: Direct materials27.2015.008.00Other variable expenses27.2033.0053.50Total variable expenses54.4048.0061.50Contribution margin$ 30.60$ 12.00$ 20.50Contribution margin ratio36%20%25%

JSON-8898 has enough demand to sell 850 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 5,100 pounds of the direct materials available every month.

What is the maximum contribution margin that JSON-8898 can earn per month using its 5,100 pounds of direct materials optimally?

multiple choice

$ 32,725

$ 35,225

$ 17,425

$ 15,300

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_2

Step: 3

blur-text-image_3

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

Statutory Audits In Europe

Authors: Michael Kend, Giulia Leoni, Cristina Florio, Silvia Gaia

1st Edition

1032201738, 978-1032201733

More Books

Students also viewed these Accounting questions

Question

Explain the savanna hypothesis for fnding a place to live.

Answered: 1 week ago

Question

2. Someone born in the same state you were

Answered: 1 week ago

Question

Connect with your audience

Answered: 1 week ago