Urmilaben Exercise 23-7 (Algo) Sales mix LO P3Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4pounds of the material, Ike uses 2.3 pounds of the material, and Bix uses 5.8 pounds of the material. Selling priceper unit and variable costs per unit of each product follow.Selling price per unitVariable costs per unitBixKin$ 164.6099.00Ike$ 114.0892.00$ 210.58152.00(a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the threeproducts in the order in which management should produce and meet demand.Product Contribution MarginKinIkeBixContribution margin per unitPounds per unitContribution margin per poundOrder in which management should produce and meet demand.

The Contribution margin per unit is computed by deducting the Variable costs per unit from the…

Answered: Exercise 23-7 (Algo) Sales mix LO P3…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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