usmanali03249337218

usmanali03249337218

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Accounting1Chemistry2

Benoit Company produces three products, D, E, and F. Cost and revenue characteristics of the three products follow (per unit):

                                                                                                                    Product                                                                                                                     D                             E                    F

Selling price                        $46                                 $41            $40

Less variable expenses:

 Direct materials                    18                                 12                 9

 Labor and overhead             13                                     9               19

 Total variable expenses         31                                   21                28

             

Contribution margin              $15                                 $20               $12

             

             

Demand for the company’s products is very strong, with far more orders on hand each month than the company has raw materials available to produce. The same material is used in each product. The material costs $3 per pound, with a limited number of pounds available each month. In what order should the company fill the demand for the three products?

  1. D,E,F
  2. E.D.F
  3. F,D,E
  4. E,F,D
Answer: To determine the order in which Benoit Company should fill the demand ...
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