Eat it experts Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.4 pounds of thematerial, Ike uses 3.1 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unitof each product follow.Selling price per unitKinIkeVariable costs per unit$ 155.46 $ 115.2898.00Bix$194.1088.00138.00(a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order inwhich management should produce and meet demand.+Product Contribution MarginKinIkeBix$115.46 $115.28$194.1098.0088.00138.00$17.46 $27.28 $56.10SalesVariable costsesContribution margin per poundOrder in which management should produce and meet demand:FirstThirdSecond

a) Compute contribution margin per pound of material for each product.To calculate the contribution…

Answered: Chip Company produces three products,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.4 pounds of the material, Ike uses 2.3 pounds of the material, and Bix uses 5.8 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 157.02 105.00 Ike $ 105.16 84.00 Вix $ 219.18 149.00 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Product Contribution Margin Kin Ike Bix Contribution margin per pound Order in which management should produce and meet demand:
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.5 pounds of the material, Ike uses 4.1 pounds of the material, and Bix uses 6.2 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 173.10 102.00 Ike $ 118.18 78.00 Bix $ 204.34 138.00 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Contribution margin per pound Product Contribution Margin Kin Ike Bix Order in which management should produce and meet demand:
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.9 pounds of the material, Ike uses 3.1 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Kin Ike Bix Selling price per unit $ 152.67 $ 118.66 $ 207.55 Variable costs per unit 93.00 92.00 141.00 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, lis
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.7 pounds of the material, Ike uses 2.6 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Ike Kin $ 156.24 $ 115.92 100.00 92.00 Contribution margin per pound (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Bix $ 207.60 146.00 Product Contribution Margin Order in which management should produce and meet demand: Kin Ike Bix
the Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.9 pounds of material, Ike uses 2.9 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 173.48 99.00 Total production hours available Variable costs Contribution margin per pound Ike $ 99.36 75.00 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Bix $ 205.85 147.00 Product Contribution Margin Order in which management should produce and meet demand: $ $ Kin 173.48 $ 99.00 74.48 $ First Ike Third 99.36 $ 75.00 24.36 $ Bix 205.85 147.00 58.85 Second
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4 pounds of the material, Ike uses 3 pounds of the material, and Bix uses 6 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 160 96 Contribution margin per pound Ike $ 112 85 Bix $ 210 144 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Product Contribution Margin Order in which management should produce and meet demand: Kin Ike Bix
Compute
Tamarisk Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Selling price Variable costs Machine hours Product Basic $44.00 $20.00 0.50 Deluxe $52.00 $24.00 0.70 Calculate the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic $ Deluxe
Question: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.5 pounds of the material, Ike uses 3.2 pounds of the material, and Bix uses 6.5 pounds of the material. The selling price per unit and variable costs per unit of each product follows. Kin Ike Bix Selling price per unit $176.05 $112.44 $227.40 Variable costs per unit Compute contribution margin per pound of material for each product. 100.00 83.00 152.00
Hesson, Incorporated, manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product F3 Product FØ Total direct labor-hours Product F3 Product F0 Direct Materials Cost per Unit $ 261.40 $187.50 The direct labor rate is $16.30 per DLH. The direct materials cost per unit for each product is given below: Activity Cost Pools Labor-related Machine setups Order size Expected Hours Per Production Unit 300 6.0 200 5.0 Direct Labor- The company is considering adopting an activity-based costing system with the following activity cost pool Activity Measures DLHs setups MHS Total Direct Labor- Hours Estimated Overhead Cost 1,800 1,000 2,800 $ 110,964 33,005 486,720 $630,689 Expected Activity Product F3 Product FØ 1,800 1,000 300 200 3,100 2,900 tivity measures, and expected Total 2,800 500 6,000 The unit product cost of Product F3 under…
Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below reports the prices and costs per unit of each product. Model A Model B Model C Selling price $50 $60 $70 Direct materials costs $6 $6 $ 6 Direct labor costs ($12 per labor hour) $12 $12 $24 Variable support costs ($4 per machine hour) $4 $8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model B X b. Model A and B would be equally profitable c. Model A d. Model C

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