I keep getting these ones wrong and I dont know why. Can someone please help. Be

Question

I keep getting these ones wrong and I dont know why. Can someone please help.

Benoit Company produces three products, a, b, and C. Data concerning the three products follow (per unit): Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $8 per pound with a maximum of 5,700 pounds available each month. Required: a. Compute contribution margin per pound of materials used.

Explanation / Answer

Answer:-

Product A- 44 / 33/8

= 44/ 4.13= 10.65

Product B- 22.50 / 27/8

= 22.50/3.38= 6.66

Product C- 30 / 7/8

= 30/0.88= 34.09

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