JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products:ProductY8$ 70.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratioX5$84.00O $ 16,650O$ 29,250O $ 31,750O $12,60025.2025.2050.40$ 33.6040%21.0031.5052.50$17.5025%Z9$74.009.0042.8051.80$ 22.2030%JSON-6854 has enough demand to sell 750 units of each product per month. Each product requires the same direct materials in itsproduction. The direct materials cost $3 per pound. The company will at most have 5,400 pounds of the direct materials availableevery month.What is the maximum contribution margin that JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?

Lets understand the basics.Key factors refer to the influential elements (e.g., direct material,…

JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 84.00 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% 29 $ 74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 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 JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?

JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 84.00 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% 29 $ 74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 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 JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?

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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