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

Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per...

80.2K

Verified Solution

Question

Accounting

Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per unit):
Product
A B C
Selling price $ 90.00 $ 57.00 $ 80.00
Variable expenses:
Direct materials 28.8018.008.00
Other variable expenses 28.8021.9048.00
Total variable expenses 57.6039.9056.00
Contribution margin $ 32.40 $ 17.10 $ 24.00
Contribution margin ratio 36%30%30%
The company estimates that it can sell 900 units of each product per month. The same raw material is used in each product. The material costs $4 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

On our moon, the acceleration of gravity is 1.6 m/sec. If a rock is dropped...

Calculus
Q

We’re going to titrate formic acid with the strong base, NaOH. There is initially 100. mL...

Chemistry
Q

Everyone knows that an earthquake is the shaking of the ground. Describe the ways in which...

Physics
Q

3 3 m 4 1 89 m While visiting the orthopedics department AIIMS Delhi Ram...

Physics
Q

The pyramids below are similar What is the ratio of the volume of the smaller...

Geometry
Q

Drag a value, coordinates, equation, or word to the boxes to correctly complete the statements.Gayle...

Basic Math
Q

Find the volume of the solid generated by revolving the region bounded by y 2x...

Calculus
Q

On January 1, 2014, Wolf Creek Country Club purchased a new riding mower for $15,000....

Accounting
Q

Issued 10,000 additional shares of common stock for $60,000 cash on January 1st. ...

Accounting
Q

BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make...

Accounting
Q

Coreys Campus Store has $3,500 of inventory on hand at the beginning of the month....

Accounting
Q

plz answer all questions. fast plz ...

Accounting