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Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per u Product B Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 90.00 $ 60.00 C $ 80.00 27.00 18.00 9.00 27.00 27.00 47.00 54.00 45.00 56.00 $ 36.00 $ 15.00 $ 24.00 25% 30% 40% The company estimates it can sell 750 units of each product per month. The same raw material is used 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 secon 3. What is the maximum contribution margin the company can earn per month if it makes optimal use o

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per u Product B Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 90.00 $ 60.00 C $ 80.00 27.00 18.00 9.00 27.00 27.00 47.00 54.00 45.00 56.00 $ 36.00 $ 15.00 $ 24.00 25% 30% 40% The company estimates it can sell 750 units of each product per month. The same raw material is used 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 secon 3. What is the maximum contribution margin the company can earn per month if it makes optimal use o

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2B Homework Problems 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 A Product B $ 90.00 $ 60.00 C $ 80.00 27.00 18.00 9.00 27.00 27.00 47.00 54.00 45.00 56.00 $ 36.00 $ 15.00 $ 24.00 40% 25% 30% The company estimates it can sell 750 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 the company can earn per month if it makes optimal use of its 5,400 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. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution margin ner pound of the constraining resource Prev 3 of 7 Next > MacBook Air
Transcribed Image Text:2B Homework Problems 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 A Product B $ 90.00 $ 60.00 C $ 80.00 27.00 18.00 9.00 27.00 27.00 47.00 54.00 45.00 56.00 $ 36.00 $ 15.00 $ 24.00 40% 25% 30% The company estimates it can sell 750 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 the company can earn per month if it makes optimal use of its 5,400 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. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution margin ner pound of the constraining resource Prev 3 of 7 Next > MacBook Air
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