90.2K

Verified Solution

Link Copied!

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): 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 $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. (Hint: Use the DM cost in the table and the cost of the material per pound to figure out how many pounds are used by 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? (See hint below.) Complete this question by entering your answers in the tabs below. Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decima places.) Complete this question by entering your answers in the tabs below. Which orders would you advise the company to accept first, those for A, B, or C ? Which orders second? Third? materials? (See hint below.) Complete this question by entering your answers in the tabs below. 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? (Round your intermediate calculations to 2 decimal places.)

Answer & Explanation Solved by verified expert

See Answer