Question max canine max canine products produces high quality dog food distributed only through veterinary offices. to ensure that the food is of the highest quality and has taste appeal, max canine max canine has a rigorous inspection process. for quality control purposes, max canine max canine has a standard based on the pounds of food inspected per hour and the number of pounds that pass or fail the inspection. max canine max canine expects that for every 13 comma 000 13,000 pounds of food produced, 1 comma 300 1,300 pounds of food will be inspected. inspection of 1 comma 300 1,300 pounds of dog food should take 1 hour. max canine max canine also expects that 5 5% of the food inspected will fail the inspection. during the month of may, max canine max canine produced 2 comma 990 comma 000 2,990,000 pounds of food and inspected 292 comma 500 292,500 pounds of food in 200 200 hours. of the 292 comma 500 292,500 pounds of food inspected, 15 comma 625 15,625 pounds of food failed to pass the inspection.

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z