Norton's Mufflers Manufactures Three Different Product Lines: Model X, Model

question 140

Essay

Norton's Mufflers manufactures three different product lines: Model X, Model Y, and, Model Z.Considerable market demand exists for all models.The following per unit data apply:
Required:
a.For each model, compute the contribution margin per unit.
b.For each model, compute the contribution margin per machine-hour.
c.If there is excess capacity, which model is the most profitable to produce? Why?
d.If there is a machine breakdown, which model is the most profitable to produce? Why?
e.How can Norton encourage her sales people to promote the more profitable model?

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Definitions:

Multiple Intelligence

The theory that suggests human intelligence is composed of a variety of distinct abilities rather than a single cognitive capacity.

Howard Gardner

Renowned for his theory of multiple intelligences, proposing that people possess various types of cognitive strengths.

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An aspect of intelligence involving the ability to analyze, evaluate, judge, or compare and contrast information.

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, ranging from children to adults.