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Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit):

	Product X				Product Y				Product Z
Selling price	$	75			$	55			$	65
Variable expenses:
Direct materials		22.50				16.50				4.55
Labor and overhead		22.50				24.75				40.95
Total variable expenses		45.00				41.25				45.50
Contribution margin	$	30.00			$	13.75			$	19.50
Contribution margin ratio		40	%			25	%			30	%

Demand for the companys 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 $3 per pound, with a maximum of 4,800 pounds available each month.

Required:

a.	Compute contribution margin per pound of materials used. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

	Contribution margin per pound
Product X	$
Product Y	$
Product Z	$

b.	Which orders would you advise the company to accept first, those for product X, for product Y, or for product Z? Which orders second? Third?

Product X	(Click to select)SecondThirdFirst
Product Y	(Click to select)SecondThirdFirst
Product Z	(Click to select)SecondThirdFirst

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