C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 5BE
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C14
A
12345570
B
D
FGH
E
Exercise 5 Diverse Company makes three products that require a special raw material that is in limited
supply. To follow is the financial and production data per unit:
Sales price
Variable costs
Contribution margin
Material required in pounds
Prod A
Prod B
Prod C
$50.00
$60.00
$75.00
$35.00
$50.00
$54.00
$15.00
$10.00
$21.00
2
1
4
Diverse company only has 2510 pounds of the material required to make its products.
Calculate the contribution margin per pound and determine the most profitable sales mix
given the limited supply of materials and product demand of 500 units for product A, 850 units
of product B and 400 units of product C.
11
12
གཞིཌཋཌཋ ཋ ཐ ང
Contribution margin per pound
Prod A
$7.50
Prod B
Prod C
$10.00
$5.25
14
Lbs material needed to meet demand
XXX
16
Most profitable sales mix (in units)
XXX
17
18
NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE.
19
20
Transcribed Image Text:C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20
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