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asap The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company s three products: A. B1
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The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company s three products: A. B1 and C 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 $6 per hour, and only 3,170 hours of labour time are avaliable 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 ploce. Round your answers to 2 decimal places.) 2. Which orders would you recommend that the company woik on next week the orders for aroduct A, product B, or product C ? Product C Product Product A 3. By paying overime wages, more than 3.170 hours of direct labour time can be made avallable 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 nor round intermediate colculetions. Round your answer to 2 decimal ploces.) Step by Step Solution
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