com Chapter 10 Homework Su Question 5 (of 9) 5. 100 points Benok Company produce

Question

com Chapter 10 Homework Su Question 5 (of 9) 5. 100 points Benok Company produces three products, A, B, and C. Data concerning the three products follow (per unny S 70 $ 50 Selling prioe Variable experses: 60 Direct materials 21.00 15.00 Other variable expenses Total variable expenses Contrbution margir Contribution margin ratio 21.00 42.00 $28.00 37.80 42.00 $18.00 37.50 $12.50 40% 25% 30% 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 $4 per pound with a maximum of 4,800 pounds available each month. a. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)

Explanation / Answer

A B C Contribution margin per unit 28 12.5 18 Pounds of materials per unit 5.25 3.75 1.05 Contribution margin per pound of materials 5.33 3.33 17.14 b Product A Second Product B Third Product C First

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