Canary's Products Inc

question 29

Essay

Canary's Products Inc.manufactures three different product lines,Basic,Better,and Best.Considerable market demand exists for all models.The following per unit data apply:

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 Canary encourage its sales people to promote the more profitable model?

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Definitions:

Functionally Autonomous

A term by psychologist Gordon Allport referring to motives or behaviors that continue independently even after the original reasons for them have changed.

Reflexes

Involuntary and automatic responses of the body to certain stimuli, serving as basic survival mechanisms.

Fixations

Persistent focuses or attachments to behaviors, concepts, or stages of development that were significant in early childhood, possibly leading to psychological issues.

Propriate Motives

Motivations that are integral to an individual's self-concept and are related to the goals of maintaining self-identity and personal significance.