Childress Company produces three products, K1, S5, and G9. Each product uses the same type...

50.1K

Verified Solution

Question

Accounting

imageimage

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.5 pounds of the material, S5 uses 3.9 pounds of the material, and G9 uses 6.1 pounds of the material. Demand for all products is strong, but only 43,100 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G91 $157.65 $126.76 $212.37 Selling price Variable costs 87.00 94.00 141.00 Required: 1. Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.) Contribution margin per pound Product K1 Product S5 Product G9 Contribution margin per pound Order in which products should be produced and filled: Beyer Company is considering the purchase of an asset for $200,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 $79,000 Year 2 $54,000 Year 3 $95,000 Year 4 $173,000 Year 5 $40,000 Tota $441,1 Net cash flows a. Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Year Net Cash Flows Present Value of 1 at 9% Present Value of Net Cash Flows $ 1 - 2 3 79,000 54,000 95,000 173,000 40,000 441,000 Totals $ Amount invested Net present value

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students