23 Banner Cowell three hanner types Ventil Horis quam. The following been here to cho Vertical Herita $60 500 To 11 SI SO Selling price Variable costs Direct materials Dins labour Variable MOH Total variable cost Contribution margin per unit Demand (in units) 14 15 16 17 18 19 20 27 8 3 38 $ 22 1.250 14 32 8 54 $36 850 40 16 4 60 $20 980 22 23 There has been a large spike in demand and orders now exceed capacity. Management is trying to determine which product(s) to concentrate on to maximize contribution murgin. Labour is the constrained input. Labour costs are $16/hour and only 3.001 labour hours are available. 1. Calculate the contribution margin relevant to making this decision Vertical Horizontal Square Direct Labour paid per unit Direct Labour rate per hour Direct Labour needed per unit Contribution margin per direct labour hour 2. Rank the products in priority order. Number 1 being the product that should be completed first and number 3 being the produc 25 26 27 28 29 30 31 32 33 34 35 36 1 2 3 3. How should the 3,001 hours be allocated to support the demand listed and best maximize contribution margin? Please note your ranking has been copied from question 2. When doing your calculations remember the products may not be Contribution mare per WIS 16 17 TA 19 1250 53 330 90 There has been a large spike in demand and anders werceed capacity Management is trying to determine which product to concentrate on to maximise contribution margin 23 Labour is the constrained input. Labour costs are 516 hour and only 3.01 labour hours are available 1. Calculate the contribution margin relevant to making this decision Vertical Horizontal Sgwan Direct Labour paid per unit Direct Labour rate per hour Direct Labour needed per unit Contribution margin per direct labour hour 226 20 30 2. Rank the products in priority order. Number 1 being the product that should be completed first and number 3 being the product that should be completed last 1 2 3 3 3. How should the 3,001 hours be allocated to support the demand listed and best maximize contribution margin? Please note your ranking has been copied from question 2. When doing your calculations remember the products may not be in the same order as above. 1.00 2.00 3.00 3.001 Unit Demand for each product How much labour is needed to satisfy demand? Total Labour hours available Labour hours used Labour hours remaining after satisfying demand Was there enough labour to fully satisy demand? How many units were produced? What is the total contribution margin for the units produces