Benoit Company produces three products, A, B, and C. Data concerning the three products follow...
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Accounting
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product Selling price $ 85 65 S 75 Variable expenses: 5.25 . 47.25 , 19.50 Direct materials Other variable expenses 25.50 25.50 Total variable expenses Contribution margin Contribution margin ratio 29.25 48.75 $16.25 51.00 52.50 $34.00 $22.50 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 $5 per pound with a maximum of 4,900 pounds available each month. Required: a. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places) Product A Product E Product C b. Which orders would you advise he company to accept first, those for A, for B, or for C? Which orders to second? Third? Product A Product BThird Product C Second
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