Chat with us, powered by LiveChat Westburne Company produces three products: Alpha, - Writemia

Westburne Company produces three products: Alpha,

Westburne Company produces three products: Alpha, Omega, and Beta. Data (per unit) concerning the three products follow:AlphaOmegaBetaSelling price$160$112$140Less variable expenses:Direct materials483018Labour and overhead485480Total variable expenses968498Contribution margin$64$28$42Contribution margin ratio40%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

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