Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Prod A Prod B Prod C Sales price Variable costs Contribution margin $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 Material required in pounds 2 1 4 20 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C Contribution margin per pound 11 Prod A 12 $7.50 Prod B $10.00 Prod C $5.25 14 Lbs material needed to meet demand 500 lbs 850 lbs 400 lbs x 16 Most profitable sales mix (in units) 500 850 400 X