Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. benoit company produces three products--a, b, and

Benoit Company produces three products--A, B, and C. Data concerning the three products follow...

90.2K

Verified Solution

Question

Accounting

Benoit Company produces three products--A, B, and C. Data concerning the three products follow (per unit):

Selling price

Variable expenses:

Direct materials

Other variable expenses

Total variable expenses

Contribution margin

Contribution margin ratio

$88.00

Product

B

$58.00

$80.00

26.40

26.40

52.80

$35.20

40%

12.00

34. 40

46.40

$11.60

20%

12.00

44.00

56.00

$24.00

30%

The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product.

The material costs $3 per pound with a maximum of 5.400 pounds available each month

Required:

  1. Calculate the contribution margin per pound of the constraining resource for each product.
  2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?
  3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Create a 1 page mini debate transcript for these two students: Imagine this scenario: You are attending...

Psychology
Q

Design a detector for the input sequence X = 01011. The output Y must be 1...

Electrical Engineering
Q

Given 2y' + 1.5y = 5x, y(0) = 3.3, What is the value of y(3) using...

Advance Math
Q

Name 2 other companies that have a holacracy structure and explain their structure.

General Management
Q

EVALUATE Lesson 6 3 Homework HW Independent Practice Complete problems 1 8 below for independent...

Geometry
Q

pts See Details f tion below ct value from the

Statistics
Q

2 A social scientist suspects that the mean number of years of education for adults...

Statistics
Q

c Table of Data Consider the function represented by the following data table Temp 125...

Algebra
Q

During March, the following transactions occurred: The company paid $2,400...

Accounting
Q

Which of the following is not good advice to give someone preparing a dashboard of...

Accounting
Q

9 An investment has the following cash flows and a required return of 14 percent....

Finance
Q

1. (15 points) Consider an American call and a European call written on the same...

Finance