control water flow for different diameter pipes: 12 millimetre, 19 millimetre and 25 millimetre. These products are catalogued respectively as 12MM, 19MM and 25MM. There are 32 500 total machining hours and employees are trained to produce any of the three products. Item Selling price per unit Variable costs per unit Materials 19MM 25MM 12MM $75.00 $150.00 $195.00 $(28.80) $(34.00) $ (42.50) Labour for machining and finishing $(15.00) $(24.00) $(31.50) Variable indirect costs $(5.00) $(9.00) $(15.00) Contribution margin per unit of $26.20 $83.00 $106.00 output Market demand for products 50 000 12 000 8 000 Machining and finishing hours 0.5 hr 0.8 hr 1.05 hr Total production machining 32 500 hours capacity :