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:

ProductABCSelling price$130.00$140.00$140.00Variable costs:Direct materials64.5044.0084.80Direct labour15.0030.0012.00Variable manufacturing overhead5.0010.004.00Total variable cost84.5084.00100.80Contribution margin$45.50$56.00$39.20Contribution margin ratio35%40%28%

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 3,170 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.)

2.Which orders would you recommend that the company work on next weekthe orders for product A, product B, or product C?