70.2K

Verified Solution

Link Copied!

ACCT 321 Home Page - AOCT 11 Managerial Accounting Ch 121 Hand-in Problem Ch 12: Hand-In Problem 6 Help Save & El Submit Check my work Benoit Company produces three products-A B, and C. Data concerning the three products follow (per unit) Selling price Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio Product $72.00 $54.60 $62.60 21.60 18.00 9.00 21.60 22.52 34.40 43.20 40.5e23.40 $28.39 $13.50 $18.60 255 385 The company estimates that it can sell 700 units of each product per month. The same raw materials used in each product. The material costs $3 per pound with a maximum of 4,800 pounds available each month Required: 1. Calcvate the contribution margin per pound of the constraining resource for each product 2. Which orders would you advise the company to accept frst, those for AB OC? Which onders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 4,800 pounds of materials Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal Product Contribution margin par pound of the constring resources 400 Product 225 Product 620 MacBook Pro Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? Product A Product B Product C Come modes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 4,800 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin Required 2

Answer & Explanation Solved by verified expert

See Answer