Chapter $23$ Homework $($i$)$

$4$

Chip Company produces three products, Kin, Ke$,$ and Bix. Each product uses the same direct material. Kin uses $4\mathrm{.}3$ pounds of the

$2\mathrm{.}5$ material, ke uses $3\mathrm{.}3$ pounds of the material, and Box uses $6\mathrm{.}5$ pounds of the material. Selling price per unit and variable costs per unit Doints of each product follow.

$\backslash$table$[[,$Kin,the,$81$x$],[$Selling price per unit,$ $172\mathrm{.}53,5123\mathrm{.}36,5212\mathrm{.}45],[$Varlable costs per unit,$99\mathrm{.}69,93\mathrm{.}00,154\mathrm{.}00]]$

$($a$)$ Compute contribution margin per pound of mutertal for each ploduct.

$($b$)$ If demand is limited$,$ list the three products in the order in which management should produce and meet demand.

$\backslash$table$[[$Product Contritution Margen$],[,$Kin,av$,$Bix$],[$Contribution margin per unit,,,$],[$Pounds per unit,,,$],[$Contilbution margin per pound,,,$],[,,,],[$Order in which management should produce and meet demant.,,,$]]$