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Coco CommodityI manufactures three different product lines. Model C1, Model C2. and Model B. Considerable market demand exists for all models. The following per unit
Coco CommodityI manufactures three different product lines. Model C1, Model C2. and Model B. Considerable market demand exists for all models. The following per unit data applyc Model C'l Model C2 Model C3 Selling price $30 $90 $100 Direct mate rials 30 3:) 30 Directlabouri$10 perhour] 15 15 20 Variable overhead costs ($5 per machine-hour) 5 1D 10 Fixed overhead costs 20 20 20 Required: a) For each model, compute the contribution margin per unit (3 marks) h) For each model. compute the contribution margin per mathinerhouri (3 marks) c) If there is excess capacity. which model is the most protable to producenustify your answer. (3 marks) d) Assume that a machine breakdown has limited total available machine hours to 250. In addition the recent release ofa competitor's product has limited demand for C2 to SD units. Determine the optimal product mix for Coco Commodity.(3 Mails]
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