Benolt Company produces three products, A, B. and C. Data concerning the three products follow (per unlt): Product A Selling price Less: Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution nargin $132.e0 $92.40 $115.5e 39.6e 24.75 14.85 44.55 69.30 39.60 66.00 s0.85 79. 20 $ 52.80 $23.10 $ 34.65 CM 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 B Contribution per hour of labour used Priority Second Third First

Benolt Company produces three products, A, B. and C. Data concerning the three products follow (per unlt): Product A Selling price Less: Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution nargin $132.e0 $92.40 $115.5e 39.6e 24.75 14.85 44.55 69.30 39.60 66.00 s0.85 79. 20 $ 52.80 $23.10 $ 34.65 CM 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 B Contribution per hour of labour used Priority Second Third First

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A Product B C $ 90.00 $ 52.00 $ 80.00 27.00 15.00 12.00 27.00 24.00 40.00 54.00 $ 36.00 40% 39.00 $ 13.00 52.00 $ 28.00 25% 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? Answer is complete but not entirely correct. Complete this…
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-1442 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: X5 Product Y8 $66.00 29 $ 72.00 $ 80.00 Selling price Variable expenses: Direct materials 16.50 12.00 24.00 24.00 48.00 33.00 Other variable expenses Total variable expenses. Contribution margin 38.40 49.50 50.40 $ 32.00 $16.50 $ 21.60 Contribution margin ratio 40% 25% 30% JSON-1442 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 $3 per pound. The company will at most have 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-1442 can earn per month using its 5,400 pounds of direct materials optimally? O$ 15,120 O $ 10,400 O $ 28,020 O $25,520
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 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 B Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses $84.00 $66.00 $74.00 25.20 18.00 9.00 25.20 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? 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 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…
Max Machining incurs the following utilities costs at different levels of production: 0 units: 500 units: 1,000 units: How would utility costs be properly classified? Select one: A. Stepped B. Fixed C. Mixed D. Curvilinear E. Variable $120 $2,620 $5,120
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