Check my work Assume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products: 17 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit Product A Product B Product C $ 70 $ 75 $ 85 16 24 20 40 28 32 2 2 3 58 54 55 $ 12 $ 21 $ 30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct materia cost is $8.00 per pound. The company has only 3,000 pounds of direct materials available for production. Assuming the company has made optimal use of its 3,000 pounds of direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? Multiple Choice О $16.00 $20.00
Check my work Assume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products: 17 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit Product A Product B Product C $ 70 $ 75 $ 85 16 24 20 40 28 32 2 2 3 58 54 55 $ 12 $ 21 $ 30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct materia cost is $8.00 per pound. The company has only 3,000 pounds of direct materials available for production. Assuming the company has made optimal use of its 3,000 pounds of direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? Multiple Choice О $16.00 $20.00
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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