Product C is missing. Benoit Company produces three products. A. B. and C. Data
ID: 2497984 • Letter: P
Question
Product C is missing.
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 $6 per pound with a maximum of 4,700 pounds available each month. Required: Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)Explanation / Answer
Pound of Raw material used in Each Product:-
Product-A:- 24/6 = 4 pound
Product-B = 18/6 = 3 pound
Product-C = 4.90/6 = 0.8167 pound
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Contibution margin per pound of Raw Material used for:-
Product -A = 32/4
= $8 per pound
Product-B = 15/3
= $5 per pound
Product-C = 21/0.816666
= $25.71 per unit