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

question 3

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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