Question
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.3 pounds of the material,
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.3 pounds of the material, S5 uses 3.6 pounds of the material, and G9 uses 6.3 pounds of the material. Demand for all products is strong, but only 58,100 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 | $ | 158.78 | $ | 124.40 | $ | 218.93 | |||||
Variable costs | 104.00 | 92.00 | 149.00 | ||||||||
Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started