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produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Selling price Variable expenses:
produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin X5 $ 72.00 $ 54.00 Z9 $ 62.00 21.60 18.00 9.00 21.60 22.50 34.40 43.20 $ 28.80 40.50 $ 13.50 43.40 $ 18.60 40% 25% 30% Contribution margin ratio has enough demand to sell 700 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 4,800 pounds of the direct materials available every month. What is the maximum contribution margin that $23,820 $ 10,800 $ 13,020 $26,320 can earn per month using its 4,800 pounds of direct materials optimally?
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