Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.4 pounds of the material, S5 uses 3.7 pounds of the material, and G9 uses 6.5 pounds of the material. Demand for all products is strong, but only 45,400 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 $ 169.40 $ 122.82 $ 228.70 Variable costs 99.00 91.00 152.00 Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.)
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.4 pounds of the material, S5 uses 3.7 pounds of the material, and G9 uses 6.5 pounds of the material. Demand for all products is strong, but only 45,400 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 $ 169.40 $ 122.82 $ 228.70 Variable costs 99.00 91.00 152.00 Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.4 pounds of the material, S5 uses 3.7 pounds of the material, and G9 uses 6.5 pounds of the material. Demand for all products is strong, but only 45,400 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 | $ | 169.40 | $ | 122.82 | $ | 228.70 | |||||
| Variable costs | 99.00 | 91.00 | 152.00 | ||||||||
Calculate the contribution margin per pound for each of the three products. Orders for which product should be produced and filled first, then second, and then third? (Round your answers to 2 decimal places.)
Transcribed Image Text:Answer is not complete.
Contribution margin per pound
Product K1
Product S5
Product G9
122.82 8 S
91.00 O
31.82 8 S
Contribution margin per unit
169.40 O s
228.70 X
Total production hours available
99.00 X
152.00 8
Contribution margin per pound
70.40 8S
36.70
Order in which products should be produced and
filled:
First
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education