Question: Benoit Company produces three products - A , B , and C . Data concerning the three products follow ( per unit ) : The
Benoit Company produces three productsA B and C Data concerning the three
products follow per unit:
The company estimates that it can sell units of each product per month. The
same raw material is used in each product. The material costs $ per pound with a
maximum of pounds available each month.
Required:
Calculate the contribution margin per pound of the constraining resource for each
product.
Which orders would you advise the company to accept first, those for A B or C
Which orders second? Third?
What is the maximum contribution margin that the company can earn per month if
it makes optimal use of its pounds of materials?
Calculate the contribution margin per pound of the constraining resource for each
product. Round your answers to decimal places.
Which orders would you advise the company to accept first, those for A B or C Which
orders second? Third?
What is the maximum contribution margin that the company can earn per month if it
makes optimal use of its pounds of materials? Round your intermediate
calculations to decimal places.
Maximum contribution margin
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