Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 Benoit Company produces the products Band Coming follow (per unit): Product A Selling price $ 80 $ 56 Variable expenses: Direct materials 24

image text in transcribed
image text in transcribed
Question 4 Benoit Company produces the products Band Coming follow (per unit): Product A Selling price $ 80 $ 56 Variable expenses: Direct materials 24 15 9 Other variable expenses 24 Total variable expenses 48 42 19 Contribution margin $ 32 $ 14 $21 Contribution margin ratio 40% 25% The company estimates that it can sell 800 units of each studeren Theme material is used in each product. The materials per sound of S. pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource product. 2. Which orders would you advise the company to confirst, those for orders second? Third? 3. What is the maximum contribution margin that the company can come more makes optimal use of its 5,000 pounds of materials? Question 4 Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B Selling price $ 80 $ 56 $70 Variable expenses: Direct materials 24 15 9 Other variable expenses 24 27 40 Total variable expenses 48 42 49 Contribution margin $ 32 $ 14 $21 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 800 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 5,000 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 makes optimal use of its 5,000 pounds of materials

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

16th Edition

007352686X, 978-0073526867

More Books

Students also viewed these Accounting questions

Question

4. Devise an interview strategy from the interviewers point of view

Answered: 1 week ago