Please answer and explain with work and steps answer in text please Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.2 pounds of thematerial, Ike uses 2.8 pounds of the material, and Bix uses 6.4 pounds of the material. Selling price per unit and variable costs per unitof each product followSelling price per unitVariable costs per unitKin$ 170.8299.00Ike$ 109.2456.00Bix$ 212.92147.00(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 MarginContribution margin per unitPounds per unitContribution margin per poundOrder in which management should produce and meet demandKinIkeBix

Income statement :— It is one of the financial statements that shows the profitability, total…

Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.2 pounds of the material, Ike uses 2.8 pounds of the material, and Bix uses 6.4 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 $ 170.82 99.00 Contribution margin per unit Pounds per unit Contribution margin per pound Ike $ 109.24 56.00 (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 $ 212.92 147.00 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 4.2 pounds of the material, Ike uses 2.8 pounds of the material, and Bix uses 6.4 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 $ 170.82 99.00 Contribution margin per unit Pounds per unit Contribution margin per pound Ike $ 109.24 56.00 (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 $ 212.92 147.00 Product Contribution Margin Order in which management should produce and meet demand Kin Ike Bix

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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