Han Products manufactures 36,000 units of part 56 each year for use on its production line. At this level of activity, the cost per unit for part 86 is: Direct materials $ 4.00 Direct labor 8.00 Variable manufacturing overhead 2.00 Fixed manufacturing overhead 9.00 Total cost per part $ 23.00 An outside supplier has offered to sell 36,000 units of part 5-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now being used to manufacture part 86 could be rented to another company at an annual rental of $86,000. However, Han Products has determined that twothirds of the fixed manufacturing overhead being applied to part 56 would continue even if part 5-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer? ::| Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 90.00 $ 57.00 $ 80.00 Variable expenses: Direct materials 28.80 18.00 8.00 other variable expenses 28.80 21.90 48.00 Total variable expenses 57.60 39.90 56.00 Contribution margin $ 32.40 $ 17.10 $ 24.00 Contribution margin ratio 36% 30% 30% The company estimates that it can sell 900 units of each product per month. The same raw material is used in each product. The material costs $4 per pound with a maximum of 5,400 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? materials: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the contribution margin per pound of the constraining resource for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution margin per pound of the constraining resource Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Product A Product C Product B Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,400 pounds of materials? Note: Round your intermediate calculations to 2 decimal places.