Product C is missing. Benoit Company produces three products. A. B. and C. Data

Question

Product C is missing.

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 $6 per pound with a maximum of 4,700 pounds available each month. Required: Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)

Explanation / Answer

Pound of Raw material used in Each Product:-

Product-A:- 24/6 = 4 pound

Product-B = 18/6 = 3 pound

Product-C = 4.90/6 = 0.8167 pound

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Contibution margin per pound of Raw Material used for:-

Product -A = 32/4

= $8 per pound

Product-B = 15/3

= $5 per pound

Product-C = 21/0.816666

= $25.71 per unit

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