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has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that materials optimally? $29,250 $ 16,650 $31,750 $12,600 earn per month using its 5,400 pounds of direct

has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that materials optimally? $29,250 $ 16,650 $31,750 $12,600 earn per month using its 5,400 pounds of direct

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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produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $29,250 $ 16,650 X5 $31,750 $ 84.00 $12,600 $ 33.60 Product Y8 25.20 21.00 25.20 31.50 50.40 52.50 40% $ 70.00 What is the maximum contribution margin that materials optimally? $ 17.50 25% Z9 has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. $ 74.00 9.00 42.80 51.80 $ 22.20 30% earn per month using its 5,400 pounds of direct
Transcribed Image Text:produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $29,250 $ 16,650 X5 $31,750 $ 84.00 $12,600 $ 33.60 Product Y8 25.20 21.00 25.20 31.50 50.40 52.50 40% $ 70.00 What is the maximum contribution margin that materials optimally? $ 17.50 25% Z9 has enough demand to sell 750 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 5,400 pounds of the direct materials available every month. $ 74.00 9.00 42.80 51.80 $ 22.20 30% earn per month using its 5,400 pounds of direct
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