idress Company produces three products, K1, S5, and G9. Each product uses the sa
ID: 2479305 • Letter: I
Question
idress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.7 pounds of the material, S5 uses 2.8 pounds of the material, and G9 uses 5.6 pounds of the material. Demand for all products is strong Information about the selling price per unit and variable cost per u it of each product follows Childress Company produces three p material. Demand for all products is strong, but only 58,600 pounds of material are available. K1 S5 G9 $158.38 $114.8 $204.52 Selling price Variable costs 86.00 91.00 139.00 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:Explanation / Answer
Statement showing computations Particulars Product K1 Product S5 Product G9 Selling Price per unit 158.38 114.80 204.52 Variable Cost per unit 86.00 91.00 139.00 Contribution per unit = SP-VC 72.38 23.80 65.52 No of pounds per unit 4.70 2.80 5.60 Contribution per pound = Cont pu/No of Pounds 15.40 8.50 11.70 Ranking 1.00 3.00 2.00
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