Question: Hi there, Could someone please help me solve this; Thanks The following are the selling price, variable costs. and contribution margin for one unit of
Hi there,
Could someone please help me solve this;
Thanks

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 A B C Seiling price $ T000 $11000 $11000 Variable costs: Direct materials 25.50 ?9.00 103.50 Direct labour 1150 35.00 21.00 Variable manufacturing 250 5-00 3-00 overhead Total variable cost 45.50 119.00 12150 Contribution margin $24.50 $ 51.00 $ 42.50 Contribution margin ratio 35% 30% 25% 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 productls} to concentrate on next week in filling its backlog of orders. The direct labour rate is $1! per hour, and only 3.9?!) 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 companyr work on next weekthe orders for product A, product 8, or product C? 0 Product C 0 Product A 0 Product 8 3. By paying overtime wages, more than 3,970 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 unlled demand for the three products? {Do not round intermediate calculations.) _
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