Contribution Margin Assignment | Top Universities
Exercise 12-12 Volume Trade-Off Decisions (L012-5]. Benoit Company produces three products Band Data concerning the three products follower unit Selling price Variable expenses: ” Other variable expenses Total variable expenses Contribution margin ratio The company estimates that it can sell 700 units of each product per month. The same raw materials used in each product. The material costs $3 per pound with a maximum of 5700 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 AB, 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 5.700 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places. Product Product Product Contribution margin per pound of the constraining resource Required. Get Accounting Homework Help Today.
