Exercise 23-11 Sales mix LO A1 three products, K1, S5, and G9. Each product uses

Question

Exercise 23-11 Sales mix LO A1 three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 37 pounds of the material, S5 uses 3.9 pounds of the material, and G9 uses 5.2 pounds of the material. Demand for all products is strong, but only 56,600 pounds of material are available. Information about the selling pr ice per unit and variable cost per unlt of each product follows Belling price variable 103.0087. $162.20 125.61$191.16 87.00135.00 Required: 1. Calculate the contribution mm margin per pound Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filled: Reference links

Explanation / Answer

Particulars K1 S5 G91 Selling Price 162.2 125.61 191.16 Variable Cost 103 87 135 Contribution margin 59.2 38.61 56.16 Direct material per unit in pounds 3.7 3.9 5.2 Contribution margin per pound 16.00 9.90 10.80 Order in which product should be produced and fillied 1 3 2

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