CONSTRES-608 company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Product A B C Selling price $ 180 $ 260 $ 240 Variable expenses: Direct materials 24 80 32 Other variable expenses 102 100 148 Total variable expenses 126 180 180 Contribution margin $ 54 $ 80 $ 60 Contribution margin ratio 30 % 30.77 % 25 % The same raw material is used in all three products. The company has only 6,600 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound. A foreign supplier could furnish the company with additional stocks of the raw material at a substantial premium over the usual price. Assuming the company’s estimated customer demand is 500 units per product line and that the company has used its 6,600 pounds of raw material in an optimal fashion, what is the highest price the company should be willing to pay for an additional pound of materials?
Solved
Show answers
More tips
- H Health and Medicine What to Take with You to the Maternity Hospital?...
- F Family and Home How to Choose the Perfect Air Conditioner for Your Life...
- H Health and Medicine Discover the Hidden Principles and Real Results of the Japanese Diet...
- H Health and Medicine Understanding Pregnancy Tests: What You Need to Know?...
- H Health and Medicine What Makes a Man a Man?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
Answers on questions: Business
- H History Why were slave states for and free states against annexation of Texas?...
- A Advanced Placement (AP) Repetition benefits auditory, visual and kinesthetic learners...
- P Physics What causes the spiral structural in milky way?...
- E English What happens in the catcher in the rye....
- B Biology information is transferred from the nucleus to ribosomes via...
Ответ: