Answers
1) Contribution margin per pound
A | B | C | |
Contribution margin per unit | 36 | 72 | 50 |
Pound per unit | 3 | 12 | 5 |
Contribution margin per pound | 12 | 6 | 10 |
2) Maximum contribution = 5400*12 = 64800
3) Maximum contribution
Pound | Unit | Contribution margin | |
Product A | 600*3 = 1800 | 600 | 1800*12 = 21600 |
Product C | 600*5 = 3000 | 600 | 3000*10 = 30000 |
Product B | 600 | 600/12 = 50 | 600*6 = 3600 |
Total | 55200 |
Maximum contribution margin = $55200
4) Highest price = 6+6 = $12 per pound
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