Question - Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 5 pounds of the material, S5 uses 2.5 pounds of the material, and G9 uses 5.7 pounds of the material. Demand for all products is strong, but only 40,200 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
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K1
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S5
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G9
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Selling price
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$171
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$110.5
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$212.69
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Variable costs
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93.00
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87.00
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146.00
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Required: Calculate the contribution margin per pound for each of the three products.