p My WSU-Valdosta Stat MM http://ezto.mheducation.com/hmtpx? 0.8769895501521537
ID: 2469690 • Letter: P
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p My WSU-Valdosta Stat MM http://ezto.mheducation.com/hmtpx? 0.8769895501521537 1460998422375 300 points Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per uni Produc Selling price Variable expenses: Direct materials 4.20 15.00 Other variable expenses 37.80 21.00 22.50 37.50 42.00 Total variable expenses 42.00 Contribution margin $28.00 $12.50 $18.00 Contribution margin ratio 40% 25% 30% Demand for the company's products i 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 4,700 pounds available each month. Required a. Compute contribution margin per pound of materials used. (Round your intermediate calculations final answers to 2 decimal places.) Contribution Margin per Pound Product A Product B Product C b Which orders would you advise the company to accept first, those for c? Which orders second? Third? for A, for B, or Product C HP Compaq LA2206Explanation / Answer
Statement showing computations Particulars Product A Product B Product C Selling Price 70.00 50.00 60.00 Variable Expenses: Direct Materials 21.00 15.00 4.20 Other Variable Expenses 21.00 22.50 37.80 Total Variable Costs 42.00 37.50 42.00 Contribution Margin = SP- VC 28.00 12.50 18.00 No of Pounds = 4.20 3.00 0.84 Contribution Margin per pound 6.67 4.17 21.43 Rankings Second Third First
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