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4 years ago

I need help with three finding maximum contribution margin

Business

1 answer:

USPshnik [31]4 years ago

7 0

Answer:The answer is product A 29,000 product B 29,800 product C 41,000 The company should accept Product C first, followed by B and A last, The maximum contribution margin is 41,000

Explanation:

Product A. Product B. Product C

$ $ $

Sales(80×800) 64,000. (56×800) 44,800. (70×800) 56,000

Less: variable cost (3×5000) 15,000. 15,000. 15,000

Contribution margin. 29,000. 29,800. 41,000

1. The contribution margin for product A is 29,000, product B is 29,800, product C is 41,000

2. The company should accept C first with highest contribution margin, B second and A th if

3 The maximum contribution margin is $41,000

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Answer:

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And, the current liabilities = Accounts Payable + Income Taxes Payable

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Answer and Explanation:

The computation is shown below:

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