Chapter 23 6 Help Save& Exit Submit Check my work 9 Childress Company produces t

Question

Chapter 23 6 Help Save& Exit Submit Check my work 9 Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.5 pounds of the material, S5 uses 2.9 pounds of the material, and G9 uses 6.4 pounds of the material. Demand for all products is strong, but only 50,100 pounds of material are available, Information about the selling price per unit and variable cost per unit of each product follows. 1.25 points Selling price Variable costs $142.55 $110.97 $215.20 89.0084.00 148.00 eBook Hint Print References Required: 1. Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.) Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filied:

Explanation / Answer

Contribution margin will calculated by deducting variable cost from selling price.

Contribution margin per pound Product K1 Product S5 Product G9 Selling price $     142.55 $     110.97 $     215.20 Less: Variable cost $       89.00 $       84.00 $     148.00 Contribution margin per pound $       53.55 $       26.97 $        67.20

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