Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 100 $ 80 $ 90 Variable expenses: Direct materials 30.00 24.00 6.30 Other variable expenses 30.00 36.00 56.70 Total variable expenses 60.00 60.00 63.00 Contribution margin $ 40.00 $ 20.00 $27.00 Contribution margin ratio 40 % 25 % 30 % Demand for the
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 100 $ 80 $ 90 Variable expenses: Direct materials 30.00 24.00 6.30 Other variable expenses 30.00 36.00 56.70 Total variable expenses 60.00 60.00 63.00 Contribution margin $ 40.00 $ 20.00 $27.00 Contribution margin ratio 40 % 25 % 30 % Demand for the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Benoit Company produces three
products, A, B, and C. Data concerning
the three products follow (per unit):
Product A B C Selling price $100 $ 80
$ 90 Variable expenses: Direct
materials 30.00 24.00 6.30 Other
variable expenses 30.00 36.00 56.70
Total variable expenses 60.00 60.00
63.00 Contribution margin $ 40.00 $
20.00 $ 27.00 Contribution margin
ratio 40 % 25 % 30 % Demand for the
company's products is very strong,
with far more orders each month than
the company can produce with the
available raw materials. The same
material is used in each product. The
material costs $7 per pound with a
maximum of 5,800 pounds available
each month.
compute contribution margin per
pound of materials used for the
product A, B, C
Which orders would you adivse the
company to accept first, second, and
third?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62123a70-90cf-417d-ad13-9832cd45bca7%2F44fc3f06-f7dc-4e81-a7dd-0b01dced8c5f%2Fcji92w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Benoit Company produces three
products, A, B, and C. Data concerning
the three products follow (per unit):
Product A B C Selling price $100 $ 80
$ 90 Variable expenses: Direct
materials 30.00 24.00 6.30 Other
variable expenses 30.00 36.00 56.70
Total variable expenses 60.00 60.00
63.00 Contribution margin $ 40.00 $
20.00 $ 27.00 Contribution margin
ratio 40 % 25 % 30 % Demand for the
company's products is very strong,
with far more orders each month than
the company can produce with the
available raw materials. The same
material is used in each product. The
material costs $7 per pound with a
maximum of 5,800 pounds available
each month.
compute contribution margin per
pound of materials used for the
product A, B, C
Which orders would you adivse the
company to accept first, second, and
third?
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