Question
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
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