Orders each month that the company can produce

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Reference no: EM131156820

Westburne Company produces three products: Alpha, Omega, and Beta. Data (per unit) concerning the three products follow:

	Alpha			Omega			Beta
Selling price	$	160		$	112		$	140

Less variable expenses:
Direct materials		48			30			18
Labour and overhead		48			54			80

Total variable expenses		96			84			98

Contribution margin	$	64		$	28		$	42

Contribution margin ratio		40	%		25	%		30	%

Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials. The same material is used in each product. The material costs $6 per kilogram, with a maximum of 10,000 kilograms available each month.

Reference no: EM131156820

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