Reference no: EM132585886
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):
Product
A B C
Selling price $80.00 $57.00 $70.00
Variable expenses:
Direct materials 24.00 15.00 12.00
Other variable expenses 24.00 27.75 37.00
Total variable expenses 48.00 42.75 49.00
Contribution margin $32.00 $14.25 $21.00
Contribution margin ratio 40% 25% 30%
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 6,200 pounds available each month.
Required:
Question 1. Calculate the contribution margin per pound of the constraining resource for each product.
Question 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?
Question 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,200 pounds of materials?
|
What are possible consequences of using poor recruitment
: How can HR professionals demonstrate that they add value to a company's bottom line? What are possible consequences of using poor or outdated recruitment
|
|
Describe the current marketing communication
: Describe the current marketing communication, identity, and brand position of Plaza Home Health Services. Conduct a Strengths Weaknesses Opportunities Threats.
|
|
Strategic Management and Leadership Assignment
: Strategic Management and Leadership Assignment - Berlin School of Business and Innovation, Germany - Strategic Analysis of Virgin Airlines
|
|
What factors should jack take into account
: Your Task Jack respects your opinion on business matters and has asked you for your views on his situation. What would be your recommendation?
|
|
Find what is the maximum contribution margin
: What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,200 pounds of materials?
|
|
What financial advantage of discontinuing linens department
: Discuss the financial advantage (disadvantage) of discontinuing the Linens Department?Bed & Bath, a retailing company, has two departments-Hardware and Linens.
|
|
Open beaker containing deionised water
: A single plant cell is placed in an open beaker containing deionised water. Very slowly, solutes are added to the water
|
|
How well do they build sustainable relationships
: Partnerships & Resources - How well do they build sustainable relationships with their partners & suppliers
|
|
Calculate the expected cash collections for april and may
: On April 1, the start of the loan period, Calculate the expected cash collections for April, May, and June, and for the three months in total.
|