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 4.7 pounds of the material, S5 uses 2.8 pounds of the material, and G9 uses 5.6 pounds of the material. Demand for all products is strong, but only 58,600 pounds of material are available Information about the selling price per unit and variable cost per unit of each product follows. Required: 1. Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.)

Explanation / Answer

product K1 S5 G9 SALES 158.38 114.8 204.52 VARIABLE COST 86 91 139 CONTRIBUTION MARGIN 72.38 23.8 65.52 MATERIAL USED 4.7 2.8 5.6 CONTRIBUTION MARGIN PER POUND 15.4 8.5 11.7 ORDER 1 2 3 ORDER IN WHICH PRODUCT SHOULD BE PRODUCED AND FILLED K1 G9 S5

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