Question
Exercise 10-11 Sales mix LO A1 Childress Company produces three products, K1, S5, and G9. Each...
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: | |||
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