Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $ 92.00 $ 66.00 $ 82.00 Direct materials Total variable expenses Other variable expenses Contribution margin 27.60 27.60 18.00 12.00 55.20 31.50 49.50 45.40 57.40 $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 258 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Contribution margin per pound of the constraining resource Product A Product B Product C < Required 1 Required 2 > 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? Product A Product B Product C < Required 1 Required 3 > 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin < Required 2 Required 3 > Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B A Selling price Variable expenses: $ 92.00 $ 66.00 $ 82.00 Direct materials Total variable expenses Other variable expenses Contribution margin 27.60 27.60 18.00 12.00 55.20 31.50 49.50 45.40 57.40 $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 258 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimal places.) Contribution margin per pound of the constraining resource Product A Product B Product C < Required 1 Required 2 > 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? Product A Product B Product C < Required 1 Required 3 > 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 A, B, 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 6,100 pounds of materials? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials? (Round your intermediate calculations to 2 decimal places.) Maximum contribution margin < Required 2 Required 3 >
Expert Answer:
Answer rating: 100% (QA)
Required 1 Contribution margin per pound of the constraining resource Product A 1650 18 092 per poun... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
that we will be sharing the balance sheet later today, both standalone and contribution view for your CFO sign-off. Please ensure that you are comfortable with the figures before we share with your...
-
how to Evaluate Apple Inc.'s working capital management approach by determine if the company is conservative or aggressive in managing its current assets and liabilities. This analysis may involve...
-
Relationship of the Balanced Scorecard to activity-based costing Explain how an activity-based costing model can be linked to a Balanced Scorecard approach.
-
Detail and explain the reasons why a researcher would engage in sampling with a research population.
-
Bugs Bunny, a wholesale dealer in ready-made menswear, achieves a gross profit ratio of 50 per cent. The statement of financial position of the business as at 30 June 20X2 was as follows: Since this...
-
How might a government forecast or a forecast from a trade association be of specific use to a medium-sized company?
-
During the current year, the Harlow Corporation, which specializes in commercial construction, has the following property transactions: a. In April, a tornado damages a crane and a dump truck at one...
-
What are the pros and cons of eBay having a global auction site in comparison to its current approach of a "US site" with links to individual country sites?...
-
(Part a) A circular loop of radius R rotates with angular frequency w in the presence of a unifrom magnetic field of magnitude B. What is the maximum induced EMF? Express maxin terms of the variables...
-
Elsa is bidding along with 20 other people on a rare painting in a first-price, sealed bid auction. Elsa believes that the bidders have independent valuations of the painting, evenly dispersed, that...
-
When the savings rate is 1/3, what is the fiscal multiplier (you can ignore taxes)? What is the multiplier when the savings rate is 1/5? Explain what this means for an increase in government spending...
-
In a standard Ricardian model, two countries (China and the US) produce and trade two goods (apparel and wheat). Each worker in China can produce 2 units of apparel or 5 bushels of wheat. Each worker...
-
Briefly describe how the Fed would use its three main policy tools to stimulate the economy . (1) The Fed should increase or decrease the benchmark rates such as Fed funds rate? Briefly explain Why....
-
An array defined as follows: int [] y = {1, 2, 3, 4, 5, 6}; The value of y[4] is
-
A task has a normal duration of 9 days and crash duration (the minimum duration) of 7 days. Its normal cost (total for 9 days) is $6000 and its crash cost is $10,000 (total for 7 days). What is the...
-
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
Describe the various legal risks for nurses.
-
Describe the various roles of advanced practice nurses.
Study smarter with the SolutionInn App