Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.8 pounds of the material, Ike uses 2.8 pounds of the material, and Bix uses 5.7 pounds of the material. Selling price per unit and variable costs per unit of each product follow.

KinIkeBixSelling price per unit$ 166.08$ 100.80$ 200.12Variable costs per unit103.0077.00134.00

(a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand.

Exercise 23-7 (Algo) Sales mix LO P3 Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.8 pounds of the material, Ike uses 2.8 pounds of the material, and Bix uses 5.7 pounds of the material. Selling price per unit and variable costs per unit of each product follow. (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand