Demand for the companys products is very strong with far

Reference no: EM13594610

Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit):

Product X Product Y Product Z
Selling price $ 70 $ 50 $ 60

Variable expenses:
Direct materials 21.00 15.00 4.20
Labor and overhead 21.00 22.50 37.80
Total variable expenses 42.00 37.50 42.00

Contribution margin $ 28.00 $ 12.50 $18.00
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 $5 per pound, with a maximum of 4,700 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.)

Reference no: EM13594610

Questions Cloud

July 2011 amy sold office equipment used in her business : feb 2011 kim sold the computer used mainly in her business. the computer was used 60 for business cost 15000 and was

Garvey corporation reported income taxes of 371699020 on : garvey corporation reported income taxes of 371699020 on its 2012 income statement and income taxes payable of

On sept 2 2011 barbie purchased a new car 3900lbs that cost : on sept 2 2011 barbie purchased a new car 3900lbs that cost 25000. usage was 25 personal and 75 business. barbie

On july 3 2011 rick purchased a warehouse for his business : on april 8 2011 kelly purchased new office furniture for her business that cost 170000. what is the maximum deduction

Demand for the companys products is very strong with far : shelby company produces three products product x product y and product z. data concerning the three products follow per

A project has the follwing estimated data price57 per unit : a project has the follwing estimated data price57 per unit variable costs32 per unit fixed costs90000 required return12

During 2012 the company completed the following selected : lincoln-priest inc. was organized in 2011. at december 31 2011 the lincoln-priest balance sheet reported the following

Heathrow issues 1700000 of 8 15-year bonds dated january 1 : heathrow issues 1700000 of 8 15-year bonds dated january 1 2011 that pay interest semiannually on june 30 and december

Compute the amount of realized gross profit to be : swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

User Account

All Pages