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Because of your love of condiments (especially on a hot dog!), you have been following the happenings at the local bottling plant. Last week, a

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Because of your love of condiments (especially on a hot dog!), you have been following the happenings at the local bottling plant. Last week, a newspaper article mentioned slowdowns there due to operational issues, which was intriguing since it's a topic you're studying at school right now. Lucky for you, one of the plant managers was already planning a visit to your classroom. As he spoke, he began witha puzzle for your class to solve: "We bottie three primary products in our plant: ketchup. mustard, and relish. Our operations manager has always put priority on our highest contribution margin product. That makes sense, right? But a few months ago, we went'old school' for our ketchup and started bottling it in classic tall, slender glass bottles. Our customers actually enjoy having to give the bottle a whack to get the product flowing. Since that switch, though, our production department can't seem to meet the budget:" The plant manager then showed the class the following information. The plantmanager then said: The puzzle: I'm not sure if we are maximizing the profitability of our bottling capacity anymore. What do youthink?" (b) Assume that after the switch to glass bottles, the following cost relationship exists for all three products: variable costs are 20% of selling price. Given this information, what must be the current contribution margin per unit for each of the three products? Further, in what order should the company now rank its products in terms of proftability if the bottling activity is its primary constraint? (Round answers to 2 decimal ploces, eg 15.25.)

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