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

1 answer:

5 0

In this task, we are asked to research the given problem and advice the corporate on which orders should they accept so as. so as to try to do that, we've got to calculate the contribution margin of every product.

Contribution margin per pound Product A = $4.00 Product B = $2.80 Product C = $7.00 2. Orders for product C should be accepted first as they yield the best contribution margin, followed by product A, then Product B which has the second highest and least contribution margin respectively.

Given the subsequent ;other variable expenses 24 27 40 total variable expenses 48 42 49 contribution margin $ 32 $ 14 $ 21 contribution margin ratio 40 Annunciation metal %.

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