Business, 30.04.2021 02:40 azaz1819

Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 60.00 $ 80.00 Variable expenses: Direct materials 27.00 18.00 9.00 Other variable expenses 27.00 27.00 47.00 Total variable expenses 54.00 45.00 56.00 Contribution margin $ 36.00 $ 15.00 $ 24.00 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 750 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 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 16:30

Aland development company purchases several acres of land adjacent to a wildlife reserve. it plans to build a new community, complete with shops and schools. green sands, a local environmental group, complains that the company's proposed building methods will disrupt the area's ecological balance. the company wants to respect the local ecology but also wants to build its development. the company decides to schedule a meeting with green sands's representatives to make choices about the property that are agreeable to both sides. which strategy would be most effective in this situation?

Answers: 2

Answer

Business, 21.06.2019 23:30

Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?

Answers: 3

Answer

Business, 22.06.2019 01:30

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Answers: 3

Answer

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

You know the right answer?

Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per u...

Questions