What is the financial advantage (disadvantage) of accepting the outside supplier's offer? EXERCISE 11-12 Volume Trade-Off Decisions L011-50 Benoit Company produces three produets B. and C. Data concerning the three products follow (per unit): Product S 80 56 S70 Selling price Variable expenses: 9 40 Total variable expenses 48 42 49 32 14 $21 Direct materials 24 15 Other variable expenses 24 27 Contribution margin at0340% Contribution margin ratio -30% 40% 25% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,o00 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2 Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? EXERCISE 11-13 Sell or Process Further Decision LO11-7 Wexpro, Inc., produces several produets from processing 1 ton of clypton, a rare mineral. Material and processing costs total $6o ono ner ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are