Circuit Company produces three products, Alph, Beta, and Coda. Each product uses the same direct material. Alph uses 3.2 pounds of the material, Beta uses 5.1 pounds of the material, and Coda uses 7.5 pounds of the material. The selling price per unit and variable costs per unit of each product follows. Alph Selling price per unit Beta Coda $145.75 $198.50 $275.90 Variable costs per unit $87.50 $126.75 $182.30 Compute contribution margin per pound of material for each product.
Circuit Company produces three products, Alph, Beta, and Coda. Each product uses the same direct material. Alph uses 3.2 pounds of the material, Beta uses 5.1 pounds of the material, and Coda uses 7.5 pounds of the material. The selling price per unit and variable costs per unit of each product follows. Alph Selling price per unit Beta Coda $145.75 $198.50 $275.90 Variable costs per unit $87.50 $126.75 $182.30 Compute contribution margin per pound of material for each product.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Transcribed Image Text:Circuit Company produces three products, Alph, Beta, and Coda. Each
product uses the same direct material. Alph uses 3.2 pounds of the
material, Beta uses 5.1 pounds of the material, and Coda uses 7.5
pounds of the material. The selling price per unit and variable costs
per unit of each product follows.
Alph
Selling price per unit
Beta Coda
$145.75 $198.50 $275.90
Variable costs per unit $87.50 $126.75 $182.30
Compute contribution margin per pound of material for each product.
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