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4 Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.3 pounds of the material, S5 uses 3.9 pounds of the material, and G9 uses 5.1 pounds of the material. Demand for all products is strong, but only 44,300 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. Selling price Variable costs K1 $162.80 94.00 S5 $111.71 77.00 691 $196.20 135.00 Calculate the contribution margin per pound for each the three products. Orders for which product should be produced and filled first, then second, and then third? (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: 5 Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment. $2,100,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 470,000 Direct labor 520,000 Variable overhead 320,000 Variable selling and administrative 210,000 Total variable costs Contribution margin Fixed costs Direct 395,000 Indirect 320,000 Total fixed costs Net income 1,520,000 580,000 715,000 $ (135,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 2 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Keep the department Eliminate the department Sales Expenses Total expenses Net income (loss) $ 0 $ Required 1 Required 2 > 6 Farrow Co. expects to sell 200,000 units of its product in the next period with the following results. $3,000,000 Sales (200,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income 400,000 800,000 200,000 300,000 514,000 2,214,000 $ 786,000 The company has an opportunity to sell 20,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $86,000. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Should the company accept or reject the offer? Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Calculate the combined total net income per unit. the company accepts the offer to sell additional units at the reduced price of $12 Normal Volume Additional Volume Combined Total Costs and expenses: Total costs and expenses Incremental income (loss) from new business

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