Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.5 pounds of thematerial, 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 unitof each product follow.Selling price per unitVariable costs per unitKin$ 173.10102.00Ike$ 118.1878.00Bix$ 204.34138.00(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.Contribution margin per poundProduct Contribution MarginKinIkeBixOrder in which management should produce and meet demand:

Detailed Explanation with an Example and References:We need to determine the contribution margin per…

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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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 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
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
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: Product Sales Priceper Unit Variable Costper Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ? per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301…
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
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: Product Sales Priceper Unit Variable Costper Unit Model 101 $275 $185 Model 201 355 220 Model 301 405 240 The current product mix is 4:3:2. The three models share total fixed costs of $328,500. A. Calculate the sales price per composite unit. Sales price $fill in the blank 363349fb9022017_1 per composite unit B. What is the contribution margin per composite unit? Contribution margin $fill in the blank 363349fb9022017_2 per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars $fill in the blank 363349fb9022017_3 Break-even point in units fill in the blank 363349fb9022017_4 units D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".…
Po.23. 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 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.
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
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: Sales Price Variable Cost per Unit Product per Unit $275 350 395 Model 101 Model 201 Model 301 The current product mix is 4:3:2. The three models share total fixed costs of $657,000. $180 215 240 A. Calculate the sales price per composite unit. Sales price $ B. What is the contribution margin per composite unit? Contribution margin $ per composite unit Break-even point in dollars $ Break-even point in units per composite unit. C. Calculate Manatoah's break-even point in both dollars and units. units
CABBAGE Company makes three products with the following characteristics: Product Product Product V JK JIN Selling price per unit P10 P15 P20 Variable Cost per unit P6 P10 P10 Machine hours per unit 2 4 10 The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 560 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?
Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle PopSelling price per unit snap: R15 crackle: R20 pop: R12Variable cost per unit snap: R10 crackle:1R3 pop: R6Fixed cost per unit snap: R2 crackle: R3 pop: R2 Unit fixed costs are based on the following sales volumes:Snap – 15 000 unitsCrackle – 12 000 unitsPop – 30 000 units Required:Calculate the aggregate break‐even units and sales for Krispies Ltd.Round to two decimals.

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