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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

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

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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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?
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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