The amount that the company is willing to pay is $12.50.
<h3>What is
CM per pounds?</h3>
CM per pounds means the Contribution margin per pounds that we will calculate below.
Particulars Amount
Selling price $125
Less: Variable cost
Material $40
Labor $22.5
Variable cost <u>$12.5</u>
CM per unit $50
Divide: Pounds used <u>$4</u>
CM per pound <u>$12.5</u>
In conclusion, the amount that the company is willing to pay is $12.50.
Read more about Contribution margin
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It would be 610.32 . My teacher helped me with that one
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