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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
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 Selling price Less variable expenses: $160 $112 $140 Direct materials Labour and overhead 48 48 96 30 54 84 18 80 98 Total variable expenses Contribution margin 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 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
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