Compute contribution margin per pound Circuit Company produces three products, Alph, Beta, and Coda.Each product uses the same direct material. Alph uses 3.2 poundsof the material, Beta uses 5.1 pounds of the material, and Coda uses7.5 pounds of the material. The selling price per unit and variablecosts per unit of each product follows.AlphSelling price per unitBetaCoda$145.75 $198.50 $275.90Variable costs per unit $87.50 $126.75 $182.30Compute contribution margin per pound of material for eachproduct.

Explanation of Contribution Margin: Contribution margin is the difference between selling price and…

Answered: Circuit Company produces three…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of Model 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix? $14 $21 $35 $56
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:
Please give me step by step Answer
Per unit of each product follows
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
Compute the contribution margin per pound of material for each product.
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $307,800, and the sales mix is 70% bats and 30% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $80 $60 Gloves 200 120
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.)
Wren Co. manufactures and sells two products with selling prices and variable costs as follows: A) selling price $18.00, variable costs $12.00, and B) selling price $22.00, variable costs $14.00. Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income was $28,800 what was the number of units Wren sold?
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 66.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 86.00 25.80 25.80 51.60 $34.40 Required 1 Required 2 40% Required 3 18.00 31.50 49.50 $16.50 25% The company estimates it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource C $76.00 Complete…
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 3 pounds of the material, and G9 uses 6 pounds of the material. Demand for all products is strong, but only 50,000 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Orders for which product should be produced and filled first, then second, and then third? $ per unit K1 S5 G9 Selling price . $160 $112 $210 Variable costs 96 85 144

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