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QUESTION 4 SPIK Inc. produces three (3) products, A, B and C. Data concerning the three products follow (per unit): Selling Price $132.00 $92.40 $115.50
QUESTION 4 SPIK Inc. produces three (3) products, A, B and C. Data concerning the three products follow (per unit): Selling Price $132.00 $92.40 $115.50 Less: Variable Expenses: Direct materials $39.60 $24.75 $14.85 Other Variable Expenses $39.60 $44.55 $66.00 Total Variable Expenses $79.20 $69.30 $80.85 Contribution Margin $52.80 $23.10 $34.65 CM ratio 40% 25% 30% Demand for the company's products is very strong, with far more orders each month than the company has raw materials available to produce. The same material is used in each product. The material costs $4.95 per kilogram with a maximum of $8,230 kilograms available each month. Required: How would you advise the company to prioritize the orders for A, B, and C
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