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The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A B, and
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A B, and C Product Selling price $110.00 $110.00 $140.00 Variable contes Direct materials 90.00 50.50 Direct labour 6.00 24.00 69.00 18.00 Variable manufacturing overhead Total variable cost Contribution margin 2.00 88.00 $22.00 8.00 82.50 6.00 93.80 $27.50 Contribution margin ratio. 20% 258 46.20 336 Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $6 per hour, and only 3,710 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your Intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) Contribution margin per labour hour A B and that the company work on next week-the orders for product A, product B, or product C?
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