## Answers

A | B | C | Total | |

Contribution margin per unit | $30.00 | $16.00 | $19.80 | |

Direct materials used per unit(in pound) | 7.50 | 5.00 | 4.00 | |

Contribution margin per pound | $4.00 | $3.20 | $4.95 | |

Ranking based on CM per pound | II | III | I | |

So company should accept the order of product C then A and then B | ||||

Maximum Demand(in units) | 900 | 900 | 900 | |

Materials used to meet maximum demand | 6750 | 4500 | 3600 | |

Materials actually used based on constraint of 5400 pounds | 1800 | 0 | 3600 | 5400 |

Maximum Contribution margin | $54,000.00 | $0.00 | $71,280.00 | $1,25,280.00 |

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