Cant seem to get this right can someone please help? :) Benoit Company produces
ID: 2479988 • Letter: C
Question
Cant seem to get this right can someone please help? :)
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Demand for the company's 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 S8 per pound with a maximum of 5,700 pounds available each month. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)Explanation / Answer
Computation of Contribution pound of Raw Material
Particulars
A
B
C
A
Contribution Margin
$ 44.00
$ 22.50
$ 30.00
B
Direct Material Cost
$ 33.00
$ 27.00
$ 7.00
C
Material Cost per Pound
$ 8.00
$ 8.00
$ 8.00
D=B/C
No of Pounds of Raw Materil Per Pound Material
4.13
3.38
0.88
E= A/D
Contribution Margin per pound of
$ 10.67
$ 6.67
$ 34.29
Computation of Contribution pound of Raw Material
Particulars
A
B
C
A
Contribution Margin
$ 44.00
$ 22.50
$ 30.00
B
Direct Material Cost
$ 33.00
$ 27.00
$ 7.00
C
Material Cost per Pound
$ 8.00
$ 8.00
$ 8.00
D=B/C
No of Pounds of Raw Materil Per Pound Material
4.13
3.38
0.88
E= A/D
Contribution Margin per pound of
$ 10.67
$ 6.67
$ 34.29
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