Required (a) Determine the contribution margin for each product. (b) Determine t

Required (a) Determine the contribution margin for each product. (b) Determine the production levels for the three products under the present constraint on plant capacity that will maximize total contribution. (c) Suppose a customer Cosmos Cosmetics Company is very interested in the new product AA101. It has offered to sign a long-term contract for 400 tons of AA101. It is also willing to pay a higher price if the entire plant capacity is dedicated to the production of AA101. What is the price for AA101 at which Aramis is indifferent between its current production of AA100 and dedicating its entire capacity to the production of AA101 for Cosmos? (d) Suppose instead that the price of AA101 is $1500 per ton and that the capacity can be increased temporarily by 600 hours if the plant is operated overtime. Overtime premium payments to workers and supervisors will increase direct labor and variable manufacturing overhead costs by 50% for all products. All other costs will remain unchanged. Is it worthwhile operating the plant overtime? If the plant is operated overtime for 600 hours what are the optimal production levels for the threeproducts?