Question: please show work Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the
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 $10.00 $12.00 $15.00 Variable costs $7.00 $10.00 $10.80 Contribution margin $3.00 $2.00 $4.20 Material required in pounds 2 1 4 Diverse company only has 502 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 100 units for product A, 170 units of product B and 80 units of product C. Prod A Prod B Prod C Contribution margin per pound $1.50 $2.00 $1.05 Lbs material needed to meet demand 200 lbs 170 lbs Most profitable sales mix (in units) 100 33 X X
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