Inc. produces Products X5, YB, and 29. 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 Show Transcribed Text X5 $72.00 21.60 21.60 43.20 $ 28.80 multiple choice. $ 33,000 $ 35,500 $ 18,600 $ 14,400 40% Product Y8 $ 60.00 18.00 27.00 45.00 $15.00 25% Z9 $62.00 9.00 34.40 43.40 $18.60 30% Inc. has enough demand to sell 1,000 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 6,600 pounds of the direct materials available every month. What is the maximum contribution margin that inc. can earn per month using its 6,600 pounds of direct materials optimally?
Inc. produces Products X5, YB, and 29. 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 Show Transcribed Text X5 $72.00 21.60 21.60 43.20 $ 28.80 multiple choice. $ 33,000 $ 35,500 $ 18,600 $ 14,400 40% Product Y8 $ 60.00 18.00 27.00 45.00 $15.00 25% Z9 $62.00 9.00 34.40 43.40 $18.60 30% Inc. has enough demand to sell 1,000 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 6,600 pounds of the direct materials available every month. What is the maximum contribution margin that inc. can earn per month using its 6,600 pounds of direct materials optimally?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Inc. produces Products X5, Y8, and 29. 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
Show Transcribed Text
X5
$72.00
Product
Y8
$ 60.00
21.60
18.00
21.60
27.00
43.20
45.00
$28.80 $15.00
40%
25%
Z9
$ 62.00
9.00
34.40
43.40
$18.60
30%
Inc. has enough demand to sell 1,000 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 6,600 pounds of the direct
materials available every month.
What is the maximum contribution margin that inc. can earn per month using its 6,600 pounds of direct materials
optimally?
multiple choice
$ 33,000
$
35,500
$
18,600
$ 14,400
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