2. ZapaKing Limited is a manufacturing company that makes three kinds of products. The company is undergoing financial difficulties and the management have decided to scrap one of its product lines. The monthly manufacturing costs of 1,000 units for each of the product lines is given below. ZapaKing's selling prices for each of its products are: Product X= $97; Product Y= $91; Product Z= $87.50.

Product X ($)Product Y ($)Product Z ($)Direct materials cost50,00040,00035,000Direct labor cost20,00025,00030,000Variableoverhead15,00010,0008,000Fixed overhead5,0006,0003,500

a) What is the unit cost for each of the product lines?

b) What is the profit per unit for each product line?

c) What is the contribution margin per unit of each of the three product lines?

d) Discuss what product line should be scrapped from ZapaKing's manufacturing lines?