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Babaia Rubber Company (BRC) manufactures a line of speed humps. Demand for production mis for the coming year The compasy peovided the following data Product Small humps size Medast humps size the company's products is increasing, and management requests assistance from you in determining in economical sales d Large humps size Demand next year (usi Selling price Direct materials Din labor $2.000 16,000 125,000 $33.40 $53.20 $19:20 58.60 $12.38 56.40 $12.50 0.80 $22.40 1.40 56.40 0.40 Direct labor hours per sit The following additional information is available The company's plant has a capacity 100,000 direct labor-hours per year on a single-shift basis. The company's present employees aut equipment can produce all three products The direct labor rate of $16 per hour is expected to remain socharged during the coming yes Fixed cost total 5320,000 per year. Variable overhead costs are $4 per direct labor-hour All the company's normamdacturing costs are fixed Required: 1. How much variable overhead cost is incurred to manufacture one unit of each of the company's three product 2. Aming dat direct labor-hours is the company's constraining resource, what is the contribution margin per direct labor-bour for each of the company's three products? Rank them in terms of profitability? Which product has the largest contribution margin per unit? Why wouldn't this prodass be the most ofitable

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