Shelby Company produces three products: X, Y, and Z. Data about the three products are as follows: ($ per unit) Selling Price Less: Variable expenses Direct materials Labor and overhead Total variable expenses Unit Contribution Margin X 80 O $20.000 O $23,000 O $160,000 O $14,000 O $35,000 24 24 48 32 Y 56 15 SANG 27 42 14 N 70 9 40 49 21 Demand for the company's products is very strong. With far more orders each month than the company can produce with the available raw materials. The same material is used in each product. It costs $3 per pound and the maximum amount the company can obtain is 5,000 pounds per month. If Shelby dedicates its 5,000 pounds of materials to their highest and best use, what is the resulting contribution margin?
Shelby Company produces three products: X, Y, and Z. Data about the three products are as follows: ($ per unit) Selling Price Less: Variable expenses Direct materials Labor and overhead Total variable expenses Unit Contribution Margin X 80 O $20.000 O $23,000 O $160,000 O $14,000 O $35,000 24 24 48 32 Y 56 15 SANG 27 42 14 N 70 9 40 49 21 Demand for the company's products is very strong. With far more orders each month than the company can produce with the available raw materials. The same material is used in each product. It costs $3 per pound and the maximum amount the company can obtain is 5,000 pounds per month. If Shelby dedicates its 5,000 pounds of materials to their highest and best use, what is the resulting contribution margin?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - account
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Transcribed Image Text:Shelby Company produces three products: X, Y, and Z. Data about the three products are as follows:
($ per unit)
X
Y
Selling Price
80
56
Less: Variable expenses
Direct materials
Labor and overhead
Total variable expenses
Unit Contribution Margin
24
24
48
32
O $20,000
$23,000
O $160,000
O $14,000
O $35,000
15
27
42
14
N
70
9
40
49
21
Demand for the company's products is very strong. With far more orders each month than the company can produce with the available raw materials. The same t
material is used in each product. It costs $3 per pound and the maximum amount the company can obtain is 5,000 pounds per month.
If Shelby dedicates its 5,000 pounds of materials to their highest and best use, what is the resulting contribution margin?
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