Westburne Company produces three products: Alpha, Omega, and Beta. Data (per unit) con- cerning the three products follow:

Demand for the company€™s products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $6 per kilogram, with a maximum of 10,000 kilograms available each month.
Required:
Which orders would you advise the company to accept first, those for Alpha, Omega, or Beta? Which orders second? Third?

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Alpha Omega $112 Beta Seling price... Less variable expenses: Direct materials .. Labour and overhead.. Total variable expenses. Contribution margin.. Contribution margin ratio.. $140 $160 ...... 30 48 48 96 $ 64 18 80 98 54 84 $28 25% $ 42 30% 40%