QUESTION 1 Utilization of a Constrained Resource Westburne Company produces three products: Alpha, Omega and Beta. Data (per unit) concerning the three products follow: Alpha Omega Beta $160 $112 $140 Selling price Less variable expenses: Direct materials Labour and overhead Total variable expenses Contribution margin Contribution margin ratio 48 48 96 $64 40% 30 54 84 $28 25% 18 80 98 $42 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 $6 per kilogram, with a maximum of 10,000 kilograms available each month. Required: Which orders would you advise the company to accept first, those for Alpha, Omega or Beta? Which orders second? Third