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What is the maximum contribution margin that the company can earn per month if it makes optimal use of pounds of materials? (Round your intermediate calculations to 2 decimal places.) Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses A Product B C $ 80.00 $62.00 $ 81.00 24.00 18.00 9.00 24.00 25.40 43.65 48.00 43.40 52.65

What is the maximum contribution margin that the company can earn per month if it makes optimal use of pounds of materials? (Round your intermediate calculations to 2 decimal places.) Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses A Product B C $ 80.00 $62.00 $ 81.00 24.00 18.00 9.00 24.00 25.40 43.65 48.00 43.40 52.65

FINANCIAL ACCOUNTING
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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What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $ 80.00 Product B $62.00 C $81.00 24.00 24.00 48.00 18.00 25.40 43.40 9.00 43.65 52.65 $ 32.00 40% $ 18.60 $ 28.35 30% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month.
Transcribed Image Text:What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $ 80.00 Product B $62.00 C $81.00 24.00 24.00 48.00 18.00 25.40 43.40 9.00 43.65 52.65 $ 32.00 40% $ 18.60 $ 28.35 30% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month.
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