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Chip Company produces three products. Kin. Ike. and Six. Each prod uct uses the same direct material. Kin uses 3.6 pounds of the material. Ike
Chip Company produces three products. Kin. Ike. and Six. Each prod uct uses the same direct material. Kin uses 3.6 pounds of the material. Ike uses 3.8 pounds ofthe maten'al. and Bit. uses 5.5 pounds ofthe material. Selling price per unit and variable costs per unit ofea ch product follow. [in Ike nix Selling price per unit 5 151.33 5 119.53 $ 233.95 variable costs per unit 95.96 35.36 149.93 (aJCompuLe contribution margin per pound of material for ea ch product. {it} If demand is limited. list the three products in the order in which management should produce and meet demand. Contribution margin per pound Order in which management should pmduoe and meet demand
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