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Product Selling price Variable expenses: $ 72.00 $ 60.00 $ 62.00 Direct materials 21.60 Other variable expenses 21.60 Total variable expenses 43.20 Contribution margin
Product Selling price Variable expenses: $ 72.00 $ 60.00 $ 62.00 Direct materials 21.60 Other variable expenses 21.60 Total variable expenses 43.20 Contribution margin $ 28.80 18.001 27.00 45.00 $ 15.00 9.00 34.40 43.40 $ 18.60 40% 258 30% Contribution margin ratio has enough demand to sell 1,000 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 6,600 pounds of the direct materials available every month. What is the maximum contribution margin that s can earn per month using its 6,600 pounds of direct materials optimally? $14,400 $35,500 $18,600 $33,000
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