Chapter 23 9 Childress C of the material, S5 uses 37 pounds of the material, and

Question

Chapter 23 9 Childress C of the material, S5 uses 37 pounds of the material, and G9 uses 5.5 pounds of the material 40.900 pounds of material are available, Information about the selling price per unit and varable cost per unit of each product follows produces three products, K1, S5, and G9 Each product uses the same type of direct material K1 uses 3 6 pounds for all products is strong, but only 1.25 Selling price $145.84 $124.34 $202.80 200.4043Cortable86.0094.00 139.00 Required 1. Calculate the contribution margin per pound for each of the three products (Round your answers to 2 decimal places) K1 $5 and

Explanation / Answer

Calculations Particulars Product K1 Product S5 Product G9 A Selling price per unit         145.04         124.34          202.80 B Variable costs per unit            86.00           94.00          139.00 C = A - B Contribution per unit            59.04           30.34            63.80 D Pounds per unit              3.60              3.70              5.50 E = C / D Contribution per pound            16.40              8.20            11.60 F = Highest to lowest Order of production                    1                    3                    2

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