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Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit): Product X Product Y Product

Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit):

Product X Product Y Product Z
Selling price $ 105 $ 85 $ 95
Variable expenses:
Direct materials 31.50 25.50 6.65
Labor and overhead 31.50 38.25 59.85
Total variable expenses 63.00 63.75 66.50
Contribution margin $ 42.00 $ 21.25 $ 28.50
Contribution margin ratio 40 % 25 % 30 %

Demand for the companys products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $5 per pound, with a maximum of 5,200 pounds available each month.

Required:
a.

Compute contribution margin per pound of materials used.(Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Contribution margin per pound
Product X $
Product Y $
Product Z $

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