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pychu [463]
3 years ago
14

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

price $ 65 $ 45 $ 55 Variable expenses: Direct materials 19.50 13.50 3.85 Other variable expenses 19.50 20.25 34.65 Total variable expenses 39.00 33.75 38.50 Contribution margin $ 26.00 $ 11.25 $ 16.50 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 with the available raw materials. The same material is used in each product. The material costs $3 per pound with a maximum of 4,500 pounds available each month. . Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)
Business
1 answer:
Vikentia [17]3 years ago
4 0

Answer:

Product A Contribution per pound: $4.000

Product B Contribution per pound: $2.500

Product C Contribution per pound: $12.857

Explanation:

\left[\begin{array}{cCcc}&A&B&C\\$Sales&65&45&55\\$Variable&39&33.75&38.5\\$CM&26&11.25&16.5\\$Constrain resource usage &6.5&4.5&1.2833\\$CM per constrain&4&2.5&12.857\\\end{array}\right]

<u>we need to calcualte the pounds used on each product:</u>

<u />

A: $19.5 material cost/ $3 per pound =  6.5

B: $13.5 material cost/ $3 per pound =  4.5

C: $3.85 material cost/ $3 per pound = 1.2833

Then we divide the contribution of eahc product by the amount of pounds used to know the contribution based on direct materials pounds.

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myrzilka [38]
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4 0
3 years ago
Carla Vista Company purchased equipment that cost $3980000 on January 1, 2020. The entire cost was recorded as an expense. The e
ICE Princess25 [194]

Answer:

$1,800,402

Explanation:

Cost = $3,980,000

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Depreciation per year = (3,980,000 - 122,000)/9

Depreciation per year = 3,858,000 / 9

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3 0
3 years ago
The writing for a proposal should ?
dedylja [7]

Answer:

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Explanation:

3 0
2 years ago
Read 2 more answers
Here I Sit Sofas has 7,500 shares of common stock outstanding at a price of $98 per share. There are 760 bonds that mature in 34
mojhsa [17]

Answer:

61.28%

Explanation:

Equity market value = Number of shares*price/share

Equity market value  = 7,500 * $98

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Current debt value = Number of bonds*price/bond

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Current debt value = $1,679,600

Preferred stock value = Number of shares*price/share

Preferred stock value = 6,400 * $51

Preferred stock value = $326,400

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $735,000 + $1,679,600 + $326,400

Total capital = $2,741,000

Weight of debt = Debt value / Total capital

Weight of debt = $1,679,600 / $2,741,000

Weight of debt = 0.6127690623859905

Weight of debt = 61.28%

7 0
3 years ago
The organization that is primarily responsible for developing GAAP for use by all U.S. companies is the:
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Answer:

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4 0
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