Childress Company produces three products, K1, S5, and G9. Each product uses the

Question

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.8 pounds of the material, S5 uses 2.2 pounds of the material, and G9 uses 5.4 pounds of the material. Demand for all products is strong, but only 57,600 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G91 Selling price $169.80 $96.70 $206.88 Variable costs 93.0078.00 151.00 Required 1. Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.) Contribution margin per pound Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filled:

Explanation / Answer

Contribution margin per pound :

Product K1 Product s5 Product G9 Selling price 169.80 96.70 206.08 Variable cost 93 78 151 Contribution margin per unit 76.8 18.70 55.08 Pound per unit 4.8 2.2 5.4 Contribution margin per pound 16 8.5 10.2 Orders in which product should be produced and filled 1 3 2

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