12-5A - Constrained Resource Wondrous Aromas Company has three lines of perfume: Red, Green, and Blue. After mega- celebrity Caitlyn Spencer tweeted that this was her favourite line of perfume, demand for all three products has been off the charts. The company has a problem, it has a limited supply of orchid nectar, a common ingredient in all three products. Orchid nectar costs $5 per gram and is the major selling feature of all three perfumes. Cost data follow: Blue Red $200 Green $160 S80 30 20 Price Variable expenses Orchid nectar Other direct materials Direct labour Variable manufacturing overhead Total variable cost Contribution margin DN 998 S100 Required a.) Which product would you recommend the company focus on producing first? Second? Third? b.) A supplier emerges willing to provide the company with more orchid nectar, but for a major premium. What is the maximum the company should be willing to pay per gram of orchid nectar as long as there is unfilled demand for all three perfumes