Multiple Choice

• $14.00

• $20.00

• $15.00

• $16.00

Proauct A $70 Proauct''B $75 Product $85 20 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit 16 40 24 28 2 32 2 3 58 54 55 $12 $21 $30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct material cost is $8.00 per pound. The company has only 1,400 pounds of direct materials available for production. Assuming the company has made optimal use of its 1,400 pounds off direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials