Question
Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio Product X5 $ 72.00 Y8 $ 54.00
Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio Product X5 $ 72.00 Y8 $ 54.00 29 $ 62.00 21.60 18.00 9.00 21.60 43.20 $ 28.80 22.50 40.50 $ 13.50 34.40 43.40 $ 18.60 40% 25% % C 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 JSON-9642 can earn per month using its 4,800 pounds of direct materials optimally? $13,020 O $ 26,320 $23,820 O $ 10,800
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