Benoit Company produces three products, A, B, and C. Data conceming the three pr

Question

Benoit Company produces three products, A, B, and C. Data conceming the three products follow (per unit): Seling price Variable expensos: 5 115 95105 7.35 4.5042.7566.15 50 S46.00 $23.75 $31.50 Direct materia's 34.50 28.50 Other variable expenses Total variable expenses Contribution margin 69.00 71.25 73 25% 30% Contribution margin ratio Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materia's. The same material is used in each product. The material costs $5 per pound with a maximum of 5,100 pounds available each mont 1. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.) n Margin p Pound ProductA Product B Product C 2. Which orders would you advise the company to accopt first, those for A, for B, or for C? Which orders second? Third? ProductA Product B Product C

Explanation / Answer

Contribution margin per pound :

2. Order accept rank :

Product A Product B Product C Contribution margin per unit 46.00 23.75 31.50 Pound per unit 6.90 5.70 1.47 Contribution margin per pound 6.67 4.17 21.43

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