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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:

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: BasicBetterBest Selling price$170$190$210 Direct materials606060 Direct labor ($20 per hour)303040 Variable support costs ($10 per machine-hour)102020 Fixed support costs404040 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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