Exercise $6-13($Algo$)$ Volume Trade$-$Off Decisions $[$LO$6-5]$

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

The company estimates that it can sell $800$ 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 $5,000$ 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 $5,000$ pounds of materials?

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