The Benoit Company produces three products: A, B, and C. The data on the three products (per unit) is shown below:

	Product
	A				B				C
Sale price	ps	90.00			ps	60.00			ps	80.00
Variable expends:
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	ps	36.00			ps	15.00			ps	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. Material is $3 per pound with a maximum of 5,400 pounds available each month.

Required:

1. Calculate the contribution margin per pound of the limiting resource for each product.

2. Which orders would you advise the company to accept first, A, B or C? What do you order second? Third?

3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of materials?