Since materials are a constraint we solve based on Contirbution per kg:
A | B | C | |
Contribution Margin (A) ($) | 32000 | 14000 | 21000 |
Meterials reqd. (B) | 24000/3000 = 8 | 15000/3000 =5 | 9000/3000 = 3 |
Hence Contirbution per kg (A/B) | 4000 | 2800 | 7000 |
Rank | 2 | 3 | 1 |
Hence we produce in following order:
21. (a) What effect would accepting this order have on the company's net operating income if...
value: 1.25 points Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product B А 70 Selling price $ $ 50 $ 60 Variable expenses: Direct materials Other variable expenses 21.00 15.00 4.20 21.00 22.50 37.80 Total variable expenses 42.00 37.50 42.00 Contribution margin $28.00 $12.50 $18.00 Contribution margin ratio 40% 25% 30% Demand for the company's products is very strong, with far more orders each month than the company can produce...
Benoit Company produces three products, A, B, and G. Data conceming the three products follow (per unt): Seling price Variable e Direct materials 31.50 25.50 6.65 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio $42.00 $2125 $28.50 Demand for the company's products is very strong with far more orders each month than the company can produce with the avalable raw materials. The same material is used in each product. The material costs $5 per pound with a...
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): А. $ 105 Product B S 85 с 95 $ Selling price Variable expenses Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 31.50 31.50 63.00 $42.00 40% 25.50 38.25 63.75 S21.25 6.65 59.85 66.50 $28.50 $ 30% 25% Demand for the company's products is very strong, with far more orders each month than the company can produce with...
Benoit Company produces three products, A, B, and C. Data concening the three products follow (per unit) Product $ 95 $ 85 105 Selling price Variable expenses: 6.65 25.50 31.50 Direct materials 38.25 63.75 $21.25 59.85 66.50 $28.50 31.50 63.00 $42.00 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 30% 40% 25% Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The...
Exercise 12-12 Volume Trade-Off Decisions [LO12-5] Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 60.00 $ 80.00 Variable expenses: Direct materials 27.00 18.00 9.00 Other variable expenses 27.00 27.00 47.00 Total variable expenses 54.00 45.00 56.00 Contribution margin $ 36.00 $ 15.00 $ 24.00 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 750 units of...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 52.00 $ 80.00 Variable expenses: Direct materials 27.00 15.00 12.00 Other variable expenses 27.00 24.00 40.00 Total variable expenses 54.00 39.00 52.00 Contribution margin $ 36.00 $ 13.00 $ 28.00 Contribution margin ratio 40 % 25 % 35 % The company estimates that it can sell 800 units of each product per month. The same...
Chew Benoit Company produces the products, A, B, and C. Data concerning the three products follow (per unit) Product A c Selling price $ 110 $0 $100 Variable expenses Direct materiale 33.00 27.00 700 Other variable expenses 33.00 40 50 63.00 Total variable expenses 66.00 67.50 70 00 Contribution margin 44.00 $22.50 Contribution margin to 40% 30% Demand for the company's products is very strong with or more orders each more than the company can produce wen he was raw...
Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 100 $ 80 $ 90 Variable expenses: Direct materials 30.00 24.00 6.30 Other variable expenses 30.00 36.00 56.70 Total variable expenses 60.00 60.00 63.00 Contribution margin $ 40.00 $ 20.00 $ 27.00 Contribution margin ratio 40 % 25 % 30 % Demand for the company’s products is very strong, with far more orders each month than...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 72.00 $ 60.00 $ 62.00 Variable expenses: Direct materials 21.60 18.00 9.00 Other variable expenses 21.60 27.00 34.40 Total variable expenses 43.20 45.00 43.40 Contribution margin $ 28.80 $ 15.00 $ 18.60 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 1,000 units of each product per month. The same...
Exercise 12-12 Volume Trade-Off Decisions [LO12-5) Benoit Company produces three products-A. B. and C. Data concerning the three products follow (per unit): A $99.88 Product B $60.00 C $82.ee Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 27.ee 27.00 54.00 $36.29 40% 18.00 27.00 45.00 $15.99 25% 9.00 47.00 56.00 $24.99 30% The company estimates that it can sell 750 units of each product per month. The same raw material is...