Sato Awards has had a request for a special order of 10 silver-plated trophies from the provincial tennis association. The normal selling price of such a trophy is $423.00 and its unit product cost is $282.00, as shown below: Direct materials Direct labour Manufacturing overhead Unit product cost $154.00 96.00 32.00 $282.00 Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any given period. However, $8 of the overhead is variable, depending on the number of trophies produced. The customer would like a special logo applied to the trophies requiring additional materials costing $7 per trophy and would also require acquisition of a special tool costing $570 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be filled using the company's existing capacity without affecting any other order. Required: a. What effect would accepting this order have on the company's operating income if a special price of $378.00 is offered per trophy for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net operating income by 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: Selling price A $70.00 Product B $140.00 C $110.00 Variable costs: Direct materials 31.00 31.00 55.20 Direct labour 13.50 45.00 18.00 Variable manufacturing overhead 4.50 15.00 6.00 Total variable cost 49.00 91.00 79.20 Contribution margin Contribution margin ratio $21.00 30% $ 49.00 35% $ 30.80 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 $9 per hour, and only 3,380 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.) A B Contribution margin per labour hour 2. Which orders would you recommend that the company work on next weekthe orders for product A, product B, or product C? Product C Product B Product A 3. By paying overtime wages, more than 3,380 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 2 decimal places.) Maximum amount per hour