Question 3 Xandu Company manufactures three products: A1, A2 and A3. The selling price, variable costs and fixed costs for one unit of each product are below: Selling Price Direct Materials Other Variable Costs Fixed Costs A1 $180 24 102 44 A2 $270 72 90 98 A3 $240 32 148 49 The same raw material is used in all three products. Xandu Company has only 4,000 kilograms of raw material on hand and this is not sufficient to fully satisfy the demand for any of its products next week. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. Direct materials cost $8 per kilogram. REQUIRED: a) Compute the contribution margin per unit of each of the three products (6 marks) b) Which product should the company produce first in order to maximise profit next week? (6 marks) Identify three initiatives that could lead to a higher level of total contribution in future? (3 marks) c)