Banner Company produces three products: A, B, and C. The selling price, variable costs, and con- EXERCISE 12-13 Utilization of a Constrained t bemmo tribution margin for one unit of each product follow: dira Product A $60 $90 $80 Selling price. Variable costs: 27 14 40 Direct materials.. Direct labor... Variable manufacturing overhead. Total variable cost..... Contribution margin.... 12 32 16 3 8 4. 42 54 60 $18 $36 $20 30% 40% 25% Contribution margin ratio... 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 concen- trate on next week in filling its backlog of orders. The direct labor rate is $8 per hour, and only 3,000 hours of labor time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labor time spent on each product. bos

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