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Exercise 12-5 Utilization of a Constrained Resource [LO3] The following are the selling price, variable costs, and contribution margin for one unit of each of

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Exercise 12-5 Utilization of a Constrained Resource [LO3] The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A, B, 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 3,710 hours of labour time are available 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 place. Round your answers to 2 decimal places.) 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Product A Product B Product C 3. By paying overtime wages, more than 3,710 hours of direct labour time can be made avallable next week. Up to how much should the company be willng to pay per hour in overtime wages as long os there is unflled demand for the three products? (Do not round Intermedlate calculations. Round your answer to 2 decimal places.)

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