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EXERCISE 12-11 Utilization of a Constrained Resource [IE-l L03] Westburne Company produces three products: Alpha, Omega, and Beta. Data (per unit) concerning the three products
EXERCISE 12-11 Utilization of a Constrained Resource [IE-l L03] Westburne Company produces three products: Alpha, Omega, and Beta. Data (per unit) concerning the three products follow: Selling price Less variable expenses: Direct materials Labour and overhead Total variable expenses Contribution margin $ 28 S 42 Contribution margin ratio Demand for the company's products is very strong, with far more orders each month than the company can produce with the available ratsr materials. The same material is used in each product. The material costs $6 per kilogram, with a maximum of 10,000 kilograms available each month. Required: Which orders would you advise the company to accept rst, those for Alpha, Omega, or Beta? Which orders second? Third
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