Benoit Company produces three products, A, B, and C. Data concerning the three p
ID: 2579653 • Letter: B
Question
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit):
Product
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.
Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)
Product A B and C?
Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third?
Product A B and C?
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit):
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Product A Product B Product C Selling price per unit 125.00 105.00 115.00 Variable expense per unit: Direct Materials 37.50 31.50 8.05 Other Variable expenses 37.50 47.25 72.45 Total Variable expenses 75.00 78.75 80.50 Contribution margin 50.00 26.25 34.50 Cost per pound 6.00 6.00 6.00 Materials Pound per unit = DM/6 6.25 5.25 1.34 Contribution per pound of material = Cont/Pound per unit 8.00 5.00 25.71 Ranking 2.00 3.00 1.00
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