JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 84.00 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% 29 $ 74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 has enough demand to sell 750 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?
JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to Product Y8 $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio X5 $ 84.00 25.20 25.20 50.40 $ 33.60 40% 21.00 31.50 52.50 $17.50 25% 29 $ 74.00 9.00 42.80 51.80 $ 22.20 30% JSON-6854 has enough demand to sell 750 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,400 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-6854 can earn per month using its 5,400 pounds of direct materials optimally?
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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