Answer:The answer is product A 29,000 product B 29,800 product C 41,000 The company should accept Product C first, followed by B and A last, The maximum contribution margin is 41,000
Step-by-step explanation:
Product A. Product B. Product C
$ $ $
Sales(80×800) 64,000. (56×800) 44,800. (70×800) 56,000
Less: variable cost (3×5000) 15,000. 15,000. 15,000
Contribution margin. 29,000. 29,800. 41,000
1. The contribution margin for product A is 29,000, product B is 29,800, product C is 41,000
2. The company should accept C first with highest contribution margin, B second and A th if
3 The maximum contribution margin is $41,000