Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductABSelling priceVariable expenses:Direct materialsOther variable expensesTotal variable expenses$84.00$66.00$74.0025.2018.009.0025.2031.5042.8050.4049.5051.80Contribution margin$33.60$16.50$22.20Contribution margin ratio40%25%30%The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 5,700 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds ofmaterials?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Calculate the contribution margin per pound of the constraining resource for each product. (Round your answers to 2 decimalplaces.)Product AProduct BProduct CContribution margin per pound of the constraining resource< Required 1Required 2 > Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductAB$84.00$66.00$74.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expenses25.2018.009.0025.2031.5042.8050.4049.5051.80Contribution margin$33.60$16.50$22.20Contribution margin ratio40%25%30%The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. Thematerial costs $3 per pound with a maximum of 5,700 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds ofmaterials?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 poundsof materials? (Round your intermediate calculations to 2 decimal places.)Maximum contribution margin< Required 2Required 3 >

The contribution margin or contribution per unit is determined by subtracting the variable expenses…

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А B $84.00 $66.00 $74.00 Selling price Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses Total variable expenses 25.20 31.50 42.80 50.40 49.50 51.80 $33.60 $16.50 $22.20 Contribution margin Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials?

Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product А B $84.00 $66.00 $74.00 Selling price Variable expenses: Direct materials 25.20 18.00 9.00 Other variable expenses Total variable expenses 25.20 31.50 42.80 50.40 49.50 51.80 $33.60 $16.50 $22.20 Contribution margin Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Benolt Company produces three products, A, B. and C. Data concerning the three products follow (per unit): Product A Selling price Less: Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution nargin $132.00 $92.48 $115.50 14.85 66.ee se.85 39.6e 24.75 44.55 69.30 39.60 79.20 $ 52.80 $23.10 $ 34.65 CH ratio 40 251 30x Demand for the company's products Is very strong. with far more orders each month than the company has raw materials avallable to produce. The same material is used in each product. The materlal costs $4.95 per klogram with a maximum of 8,230 kilograms avallable each month. Required: Calculate the contribution per constralned resource and prioritize the orders for products A, B and C. (Round your answers to 2 decimal places.) A Contribution per hour of labour used Priority Second Third First
Benoit Company produces three products-A, B, and C, Data concerning the three products follow (per unit): Product B $ 66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 92.00 27.60 27.60 55.20 $36.80 40% 18.00 31.50 49.50 $16.50 25% C $ 82.00 12.00 45.40 57.40 $ 24.60 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials?
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A В C $ 84.00 $ 66.00 $ 74.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses 25.20 25.20 18.00 9.00 31.50 42.80 50.40 49.50 51.80 Contribution margin $33.60 $ 16.50 $ 22.20 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 850 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,700 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,700 pounds of materials?
JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 90.00 $ 66.00 $ 80.00 Selling price Variable expenses: Direct materials 18.00 27.00 27.00 54.00 Other variable expenses Total variable expenses Contribution margin 31.50 9.00 47.00 56.00 $ 24.00 49.50 $36.00 $16.50 Contribution margin ratio 40% 25% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? Ⓒ$ 31,200 $ 33,700 Ⓒ$ 16,800 Ⓒ$ 14,400
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product A $ 80.00 $ 62.00 $ 81.00 Selling price Variable expenses: Direct materials 24.00 18.00 9.00 Other variable expenses Total variable expenses 24.00 25.40 43.65 48.00 43.40 52.65 Contribution margin $ 32.00 $ 18.60 $ 28.35 Contribution margin ratio 40% 30% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Complete this question by entering your answers in the tabs below.…
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 92.00 $ 66.00 $ 82.00 Variable expenses: Direct materials 27.60 18.00 12.00 Other variable expenses 27.60 31.50 45.40 Total variable expenses 55.20 49.50 57.40 Contribution margin $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials?
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Costper Unit DL Hoursper Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
Wimberley Ltd provides the following data regarding its four product lines: A B C D Product Selling price ($) 10 Variable costs per unit ($) Sales mix 35 55 91 3 16 29 65 60 20 15 5 Required Calculate, to two decimal places, the weighted average contribution margin per unit (WACMU).
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $80.00 Required 1 Required 2 24.00 24.00 48.00 $ 32.00 Required 3 40% 18.00 25.40 43.40 $ 18.60 30% с $81.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource 9.00 43.65…
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 84.00 25.20 25.20 50.40 $ 33.60 40% Required 1 Required 2 Required 3 21.00 31.50 52.50 $ 17.50 25% с $ 74.00 The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Contribution margin per pound of the constraining resource Product C
What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 Select one: a. Discretionary fixed cost b. Step-fixed cost. c. Semivariable cost.d. Variable cost. e. Fixed cost
Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output in Units Fixed Costs Variable Costs Total Costs250 $4,750 $ 7,500 $12,250 300 4,750 9,000 13,750350 4,750 10,500 15,250400 4,750 12,000 16,750Required1. Calculate and graph total costs, total variable cost, and total fixed cost.2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unitfixed cost, and discuss the behavior of the per-unit costs over the given output levels.