C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20

C14 A 12345570 B D FGH E Exercise 5 Diverse Company makes three products that require a special raw material that is in limited supply. To follow is the financial and production data per unit: Sales price Variable costs Contribution margin Material required in pounds Prod A Prod B Prod C $50.00 $60.00 $75.00 $35.00 $50.00 $54.00 $15.00 $10.00 $21.00 2 1 4 Diverse company only has 2510 pounds of the material required to make its products. Calculate the contribution margin per pound and determine the most profitable sales mix given the limited supply of materials and product demand of 500 units for product A, 850 units of product B and 400 units of product C. 11 12 གཞིཌཋཌཋ ཋ ཐ ང Contribution margin per pound Prod A $7.50 Prod B Prod C $10.00 $5.25 14 Lbs material needed to meet demand XXX 16 Most profitable sales mix (in units) XXX 17 18 NOTE: THERE IS A SOLUTION VIDEO FOR THIS IN CANVAS. CHECK IT OUT IF YOU ARE HAVING TROUBLE. 19 20

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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