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7 Dec 2017
EXERCISE 12-12 Utilization of a Constrained Resource [L012-5] Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product 1 A ....... 2. $70 Selling price.......... Variable expenses: Direct materials Other variable expenses ..... Total variable expenses ........ Contribution margin .......... Contribution margin ratio .... de $21 30% 40% 25% Demand for the company's products is very strong, with far more orders each month than the com- pany can produce with the available raw materials. The same material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third?
EXERCISE 12-12 Utilization of a Constrained Resource [L012-5] Benoit Company produces three products, A, B, and C. Data concerning the three products follow (per unit): Product 1 A ....... 2. $70 Selling price.......... Variable expenses: Direct materials Other variable expenses ..... Total variable expenses ........ Contribution margin .......... Contribution margin ratio .... de $21 30% 40% 25% Demand for the company's products is very strong, with far more orders each month than the com- pany can produce with the available raw materials. The same material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third?
31 May 2023
Tod ThielLv2
7 Dec 2017
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