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

Demand for the company?s products is very strong, with far more orders each month than the company has raw materials available to produce. The same material is used in each product. The material costs $4.95 per kilogram with a maximum of 8,230 kilograms available each month.

Required:

How would you advise the company to prioritize the orders for A, B, and C?

Transcribed Image Text:

Product A Selling price $132.00 $115.50 $92.40 Less: Variable expenses: Direct materials 39.60 24.75 14.85 44.55 66.00 Other variable expenses 39.60 Total variable expenses 79.20 69.30 80.85 $ 52.80 $ 34.65 Contribution margin $23.10 CM ratio 40% 25% 30%