Exercise 10-11 Sales mix LO A1

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds of the material, S5 uses 2.4 pounds of the material, and G9 uses 5.8 pounds of the material. Demand for all products is strong, but only 47,700 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	$	161.00			$	105.32			$	198.74
Variable costs		95.00				83.00				139.00

Required: 1. Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.)

Contribution margin per pound
	Product K1	Product S5	Product G9
Contribution margin per pound
Order in which products should be produced and filled: