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The same raw material is used in all three products. Smith Company has only 4,700 pounds of raw material on hand and will not be
The same raw material is used in all three products. Smith Company has only 4,700 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. The same raw material is used in all three products. Smith Company has only 4,700 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $7 per pound. 1. What is the CM per the Constrained Resource? (CM per pound of material used) - Product A contribution margin per pound - Product B contribution margin per pound - Product C contribution margin per pound 2. What is the Total CM dollar amount per product? - Total Product A contribution margin - Total Product B contribution margin - Total Product C contribution margin 3. What product should be recommended to be manufactured first? - Product
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