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(Solution Download) Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per


 

 

 

 

 

 

 

Benoit Company produces three products, A, B, and C. Data

 

concerning the three products follow (per unit):

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

A

 

B

 

C

  Selling price$120$100$110
  Variable

 

expenses:

 

      Direct materials

36.0030.007.70

 

      Other variable expenses

36.0045.0069.30
  Total variable

 

expenses

72.0075.0077.00
  Contribution

 

margin

$48.00$25.00$33.00
  Contribution margin

 

ratio

40%25%30%

 


 

 

 

 

 

 

 

 

Demand for the companyAc??cs 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 $4 per pound with a maximum of 4,100 pounds

 

available each month.

 


 

 

 


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