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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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