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elling price ariable expenses: Direct materials Other variable expenses tal variable expenses intribution margin $ 80.00 24.00 24.00 48.00 $ 32.00 $ 54.00 18.00 25.20 43.20 10.80

elling price ariable expenses: Direct materials Other variable expenses tal variable expenses intribution margin $ 80.00 24.00 24.00 48.00 $ 32.00 $ 54.00 18.00 25.20 43.20 10.80

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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Inc. produces Products Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $ 20,400 $34,800 $14,400 11273 $ 37,300 $ 80.00 24.00 24.00 48.00 $ 32.00 40% The following table provides per unit information relating to the three products: Product $ 54.00 18.00 25.20 43.20 $10.80 20% $ 80.00 has enough demand to sell 850 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 7,000 pounds of the direct materials available every month. What is the maximum contribution margin that can earn per month using its 7,000 pounds of direct materials optimally? 12.00 44.00 56.00 $ 24.00 30%
Transcribed Image Text:Inc. produces Products Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $ 20,400 $34,800 $14,400 11273 $ 37,300 $ 80.00 24.00 24.00 48.00 $ 32.00 40% The following table provides per unit information relating to the three products: Product $ 54.00 18.00 25.20 43.20 $10.80 20% $ 80.00 has enough demand to sell 850 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 7,000 pounds of the direct materials available every month. What is the maximum contribution margin that can earn per month using its 7,000 pounds of direct materials optimally? 12.00 44.00 56.00 $ 24.00 30%
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