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Cari Company produces three products; X, Y and Z. Additionally, they only have 1,000 direct labor hours available to produce their products. Time requirements and

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Cari Company produces three products; X, Y and Z. Additionally, they only have 1,000 direct labor hours available to produce their products. Time requirements and contribution margins per unit for each product are as follows: Product X Product Y Product Z Labor hours Contribution margin per unit $10 $24 $12 Required: a. Which of the three product lines makes the most profitable use of the constrained resource, direct labor hours? What would be the contribution margin if you used all of the direct labor hours to produce and sell it? b. What would be the contribution margin if you were forced to produce and sell at least 50 units of Y? Did contribution margin go up or down? How much? c. What would be your mix assuming that Cari Company had to produce and sell at least 50 units of Y and could not sell more than 125 units of X? What would be the new contribution margin of this mix

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