1. what is the contribution margin machine hour?

2. Should the company make or buy?

Assume OH is 75% variable and 25% fixed

Assume Selling Expense is 2/3 variable and 1/3 fixed

Assume Admin Expense if 50% variable and 50% fixed

Sales Price/unit Direct Material/unit Direct Labor/unit Variable OH/unit Product Q Product R 15.00 18.00 5.50 6.70 4.20 5.50 3.30 4.00 MH/unit 2.00 1.00 Historical Costs DM DL OH selling expense admin expense total expense unit 6.70 7.30 8.40 3.00 2.60 28.00 Q 30,000 201,000 219,000 252,000 90,000 78,000 840,000