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Boker Company manufoctures three products: A, B and C. The selling price, varisble costs and contribution margin for one unit of each product follow: The some row material is used in all three products and costs $4 per kilogram. Baker Company hos only 8,000 kilograms of material on hand and will not be oble to obtain any more material for several weeks due to a strike in its supplier's plant. Mansgement is trying to decide which product(s) to concentrote on next week in filling its bscklog of orders. Direct lsbour costs $18 per hour. Required: 1. Compute the smount of contribution margin that will be obtained per kilogram of moterisl used in esch product. (Do not round Intermedlate calculations. Round your answers to 2 decimal places.) 2. Which orders would you recommend that the compony work on next week-the orders for product A, product B or product C? Product A Product B Product C 3. A foreign supplier could furnish Bsker with odditional stocks of the row material at a substontiol premium over the ususl price. If there is unfilled demond for all three products, what is the highest price that Baker Company should be willing to poy for on additionsl kilogram of materisls? (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) 4. Assume that direct lsbour becomes a constrsint instesd of direct materisls. How will your answer to Requirement (2) above change? Product A Product B Product C

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