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Futura Company produces products A and B.Per unit data concerning the two products follow: Product A Product B Selling price 170 140 Less: Variable expenses:

Futura Company produces products A and B.Per unit data concerning the two products follow:

Product A

Product B

Selling price

170

140

Less: Variable expenses:

Direct materials

50

45

Other variable expenses

69

46

Total variable expenses

119

91

Contribution margin

51

49

CM ratio

30%

35%

Demand for the company's products is very strong, with far more orders each month than the company has raw material available to produce.The same material is used in each product.The material costs $5 per kilogram with a maximum of 6,000 kilograms available each month.

How would you advise the company to prioritize the orders for A and B?Show calculations to support your answer.

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Futura Company produces products A and B. Per unit data concerning the two products follow: Product A Product B Selling price 170 140 Less: Variable expenses: Direct materials 50 45 Other variable expenses Total variable expenses ml Contribution margin 51 49 CM ratio 30% 35% Demand for the company's products is very strong. with far more orders each month than the company has raw material available to produce. The same material is used in each product. The material costs $5 per kilogram with a maximum of 6,000 kilograms available each month. Required: How would you advise the company to prioritize the orders for A and B? Show calculations to support your

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