$ 62.00 9.00 34.40 43.40 $ 18.60 30% ct per month. Each product requi hy will at most have 4.800 pound
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![JSON-5313 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products:
Product
Y8
X5
Z9
Selling price
$ 72.00
$ 54.00
$ 62.00
Variable expenses:
Direct materials
21.60
18.00
9.00
21.60
22.50
34.40
43.20
43.40
Other variable expenses
Total variable expenses
Contribution margin
Contribution margin ratio
40.50
$13.50
$28.80
$18.60
40%
25%
30%
JSON-5313 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its
production. The direct materials cost $3 per pound. The company will at most have 4,800 pounds of the direct materials available
every month.
What is the maximum contribution margin that JSON-5313 can earn per month using its 4,800 pounds of direct materials optimally?
O $ 10,800
O $ 13,020
O $ 23,820
O $ 26,320](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1e1d114-cba9-4c4f-a9ab-1a346fb28105%2Fbdd5bcc5-1d06-4bad-8649-76d23b73c869%2Fkq8tm4b_processed.png&w=3840&q=75)
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