Business, 06.05.2020 17:01 imhacking2048

Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit):Product A B CSelling price $85 $65 $75Variable expenses:Direct materials 25.50 19.50 5.25Other variable expenses 25.50 29.25 47.25Total variable expenses 51.00 48.75 52.50Contribution margin $34.00 $16.25 $22.50Contribution margin ratio 40 % 25 % 30 %

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. The material costs $8 per pound with a maximum of 5,800 pounds available each month.

Compute contribution margin per pound of materials used.

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