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Art Lighting Inc. produces three types of lights: floor lamps, pendant lights, and chandeliers. In the last fiscal year, the firm operated at full
Art Lighting Inc. produces three types of lights: floor lamps, pendant lights, and chandeliers. In the last fiscal year, the firm operated at full capacity (for direct labour hours) and had the following information for each product line: Floor lamps Pendant lights Chandeliers Sales Price per unit $200 $500 $1,200 Direct Materials per Unit $80 $250 $600 Direct Labour Hours per unit 2 4 10 Variable Overhead per unit $5 $8 $15 Fixed Overhead per unit $20 $30 $200 Sales Commission (% of sales price) 5.0% Direct labour wages are $18 per direct labour hour. 7.0% 9.0% Rank the products in order from the HIGHEST contribution margin ratio to the lowest. Pendant lights, Chandeliers, Floor lamps Chandeliers, Floor lamps, Pendant lights Floor lamps, Pendant lights, Chandeliers Floor lamps, Chandeliers, Pendant lights
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