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Chip Company produces three products, Kin, lke, and BIx. Each product uses the same direct materlal. Kin uses 3.4 pounds of the materlal, Ike uses
Chip Company produces three products, Kin, lke, and BIx. Each product uses the same direct materlal. Kin uses 3.4 pounds of the materlal, Ike uses 3.6 pounds of the materlal, and Bix uses 6.8 pounds of the materlal. Selling price per unit and varlable costs per unlt of each product follow. (a) Compute contribution margin per pound of materlal for each product. (b) If demand Is limited, IIst the three products in the order In which management should produce and meet demand
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