Question: F 2 Ex 7 3 4 5 (4 points) Multi Company makes three products. To follow is the financial and production data per unit: Prod

F 2 Ex 7 3 4 5 (4 points) Multi Company

F 2 Ex 7 3 4 5 (4 points) Multi Company makes three products. To follow is the financial and production data per unit: Prod A Prod B Prodc Sales price $6.00 $8.00 $10.00 Variable costs $4.50 $7.00 $7.20 Contribution margin per unit $1.50 $1.00 $2.80 Direct material required per unit (in lbs) 1 4 Due to problems with suppliers, Multi Company only has 4200 pounds of material available. Assume product demand of 500 units for product A, 2000 units product B and 400 units product C. Prod A Prod B Prod C What is the most profitable sales mix in units? 3 10 12 18 What is the total contribution margin at ideal sales mix? 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

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