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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 ,
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:
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 products to concentrate on next week in filling its backlog of
orders. The direct labour rate is $ per hour, and only hours of labour time are available each week.
Required:
Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product.
Round your intermediate calculations to decimal place. Round your answers to decimal places.
Which orders would you recommend that the company work on next weekthe orders for product A product B or
product C
Product A
Product C
Product B
By paying overtime wages, more than hours of direct labour time can be made available next week. Up to how
much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the
three products? Do not round intermediate calculations. Round your answer to decimal places.
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