4 5 points eBook HOE Hint Print References Exercise 23-7 (Static) Sales mix LO P3 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 Contribution margin per unit Kin $ 160 96 Contribution margin per pound Ike $ 112. 85 (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 $ 210 144 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 matertal Kin uses 4 pounds of the material, lke uses 3 pounds of the material, and Blx uses 6 pounds of the material. Seling price per unit and variable costs per unit of each product follow. (6) Compute contribution margin per pound of material for eoch product (b) if demand is limited, list the three products in the order in Which manogement shouid produce and meet demand