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SON-5671 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product X5 Y8 Z9 Selling
SON-5671 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product X5 Y8 Z9 Selling price $ 80.00 $ 54.00 $ 80.00 Variable expenses: Direct materials 24.00 18.00 12.00 Other variable expenses 24.00 25.20 44.00 Total variable expenses 48.00 43.20 56.00 Contribution margin $ 32.00 $ 10.80 $ 24.00 Contribution margin ratio 40% 20% 30% JSON-5671 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 7,000 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-5671 can earn per month using its 7,000 pounds of direct materials optimally? multiple choice $ 20,400 $ 14,400 $ 34,800 $ 37,300
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