Benoit Company produces three products, A, B, and C. Data concerning the three...
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Accounting
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): A Product B $ 85 95 $ 105 $ Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin 31.50 31.50 63.00 $42.00 40% 25.50 6.65 38.2559.85 63.75 66.50 $21.25 $28.50 25% 30% Contribution margin ratio 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 $8 per pound with a maximum of 4,200 pounds available each month. Required: 1. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.) Contribution Margin per Pound Product A Product B Product C 2. Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third? Product A Product B Product C
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