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Compute contribution margin per pound of materials used

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Reference no: EM131329309

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

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 $7 per pound with a maximum of 4,300 pounds available each month.

Required:

a. Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places.)

b. Which orders would you advise the company to accept first, those for A, for B, or for C? Which orders second? Third?

Reference no: EM131329309

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