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nc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Z9 Selling price
nc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Z9 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin X5 $ 90.00 $ 60.00 $ 80.00 27.00 15.00 9.00 27.00 30.00 47.00 54.00 $ 36.00 45.00 $ 15.00 56.00 $ 24.00 40% 25% 30% Contribution margin ratio 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 $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that can earn per month using its 5,700 pounds of direct materials optimally? $ 20,400 $ 33,000 $ 12,600 $ 35,500
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