ed-t0ancesBenoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductB$ 58.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratioA$88.0026.4026.4052.80$ 35.2040%12.0034.4046.40$ 11.60201Contribution margin per pound of the constraining resourceRequired 1C$ 80.0012.0044.0056.00$ 24.00The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The materialcosts $3 per pound with a maximum of 5,400 pounds available each month.Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds of materials?30%Complete this question by entering your answers in the tabs below.Product ARequired 1 Required 2Required 3Calculate the contribution margin per pound of the constraining resource for each product.Note: Round your answers to 2 decimal places.Product BRequired 2 >Product C Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit):ProductB$ 58.00Selling priceVariable expenses:Direct materialsOther variable expensesTotal variable expensesContribution marginContribution margin ratio$ 88.0026.4026.4052.80$ 35.2040%Required 112.0034.4046.40$ 11.60Required 120%The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The materialcosts $3 per pound with a maximum of 5,400 pounds available each month.C$ 80.00Required: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 5,400 pounds of materials?< Required 112.0044.0056.00$ 24.00Complete this question by entering your answers in the tabs below.Required 2 Required 3Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?Product AProduct BProduct C30%< Required 2Complete this question by entering your answers in the tabs below.Required 3 >Required 2 Required 3What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,400 pounds ofmaterials?Note: Round your intermediate calculations to 2 decimal places.Maximum contribution marginRequired 3

The contribution gap is the difference between a product's price and any associated variable…

Answered: Benoit Company produces three…

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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Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.

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