Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please explain Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): A $90.00 Product B $60.00 $80.00 Selling
please explain
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): A $90.00 Product B $60.00 $80.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 27.00 27.00 54.00 $36.00 15.00 30.00 45.00 $15.00 9.00 47.00 56.00 $24.00 40 258 308 The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materialsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started