The following are the selling price, varlable 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 trylng to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate Is $7 per hour, and only 3,520 hours of labour time are avallable each week. Required: 1. Compute the amount of contribution margin that will be obtalned per hour of labour time spent on each product. (Round your Intermedlate calculatlons to 1 decimal place. Round your answers to 2 decimal places.) 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C ? Product A Product B Product C 3. By paying overtime wages, more than 3,520 hours of direct labour time can be made avallable 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 Intermedlate calculatlons. Round your answer to 2 decimal places.)
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