9 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: Product A $90.00 B $150.00 $170.00 16/20 points awarded Selling price Variable costs Direct materials Direct labour Variable manufacturing overhead Scored 50.50 10.00 2.50 66.25 25.00 6.25 105.35 15.00 3.75 Total variable cost 63.00 97.50 124.10 Contribution margin $27.00 $ 52.50 $ 45.90 Contribution margin ratio 300 350 278 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 filling its backlog of orders. The direct labour rate is $5 per hour, and only 3,940 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.) c Contribution margin per labour hour $ 13.50 10.50 $ 15.30 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Product C Product B Product A 3. By paying overtime wages, more than 3.940 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 unfilled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum s 8.00 amount per hour 10 In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $70,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: raw sugar, $35.000: brown sugar. 38,250; and white Sugar, $46,500. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Additional Processing Sales Product Value Raw sugar $ 37,025 $ 70,000 Brown sugar $ 27,050 $ 69,375 white sugar $ 28,750 $ 91,000 702/10 points awarded Scored Couts Required: a. Compute the incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar Brown Sugar White Sugar Incremental profit 1055) $ 2,025)$ 2,496 15,750 b. Which product or products should be sold at the split-off point? [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Raw sugar Brown sugar White sugar c. Which product or products should be processed further? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Raw sugar Brown sugar White sugar