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Selling price $ 84.00 $ 66.00 $ 74.00 Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses 25.20 31.50 42.80 Total variable expenses 50.40
Selling price | $ 84.00 | $ 66.00 | $ 74.00 |
---|---|---|---|
Variable expenses: | |||
Direct materials | 25.20 | 18.00 | 9.00 |
Other variable expenses | 25.20 | 31.50 | 42.80 |
Total variable expenses | 50.40 | 49.50 | 51.80 |
Contribution margin | $ 33.60 | $ 16.50 | $ 22.20 |
Contribution margin ratio | 40% | 25% | 30% |
JSON-3229 has enough demand to sell 850 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 5,700 pounds of the direct materials available every month.
What is the maximum contribution margin that JSON-3229 can earn per month using its 5,700 pounds of direct materials optimally?
multiple choice
$ 33,970
$ 31,470
$ 18,870
$ 12,600
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