Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 80.00 $ 62.00 $81.00 Selling price Variable expenses: Direct materials 24.00 18.00 9.00 24.00 25.40 43.65 Other variable expenses Total variable expenses Contribution margin 48.00 43.40 52.65 $32.00 $18.60 $28.35 Contribution margin ratio 40% 30% 35% JSON-3204 has enough demand to sell 800 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 5,000 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-3204 can earn per month using its 5,000 pounds of direct materials optimally? $ 35,580 $ 10,400 $ 33,080 $ 22,680

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products:
Product
Y8
X5
Z9
$81.00
$ 80.00
$ 62.00
Selling price
Variable expenses:
Direct materials
18.00
9.00
24.00
24.00
25.40
43.65
48.00
43.40
52.65
Other variable expenses
Total variable expenses
Contribution margin
Contribution margin ratio
$ 32.00 $18.60
$28.35
40%
30%
35%
JSON-3204 has enough demand to sell 800 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 5,000 pounds of the direct materials available every
month.
What is the maximum contribution margin that JSON-3204 can earn per month using its 5,000 pounds of direct materials optimally?
$ 35,580
$ 10,400
$ 33,080
$ 22,680
Transcribed Image Text:Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $81.00 $ 80.00 $ 62.00 Selling price Variable expenses: Direct materials 18.00 9.00 24.00 24.00 25.40 43.65 48.00 43.40 52.65 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $ 32.00 $18.60 $28.35 40% 30% 35% JSON-3204 has enough demand to sell 800 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 5,000 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-3204 can earn per month using its 5,000 pounds of direct materials optimally? $ 35,580 $ 10,400 $ 33,080 $ 22,680
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