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Bibinoty Enterprise (BE) produces three (3) product: A, B and C. Data per unit concerning the three (3) products as follows: Products A B C
Bibinoty Enterprise (BE) produces three (3) product: A, B and C. Data per unit concerning the three (3) products as follows: Products A B C Selling price RM80 RM56 RM70 Variable costs: Direct materials 24 15 9 Other variable costs 24 27 40 Total variable costs 48 42 49 Contribution margin 32 14 21 Contribution margin ratio 40% 25% 30% Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs RM3 per kilogram (kg) with a maximum of 5,000 kilograms (kgs) available each month. REQUIRED: Identify ranking of the product and advice BE to decide which order to accept first, second and third. Show the computation
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