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Question - What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of
Question - What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials?
A $75.00 Product B $64.00 C $66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 22.50 22.50 45.00 $30.00 15.00 33.00 48.00 $16.00 25% 12.00 34.20 46.20 $19.80 30% 40% The company estimates that it can sell 900 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 5,400 pounds available each monthStep by Step Solution
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