10.......3

The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A. B, and C: . ' B elling pr $140.00 $110.00 Variable costs: Direct materials 31.00 5520 Direct labour 45.00 18.00 Variable manufacturing overhead 15.00 6.00 Total variable cost 91.00 79.20 Contribution margin $ 49.00 $ 30.80 __.- Contribution margin ratio 35% 28% _ Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in lling its backlog of orders. The direct labour rate is $9 per hour, and only 3,380 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) Contribtion margin per labour hour 2. Which orders would you recommend that the company work on next weekthe orders for product A, product B, or product C? 114' Product 0 to Product B 0 Product A 3. By paying overtime wages, more than 3,380 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unlled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.)