Exacto Corporation manufactures three products at its plant. The plant capacity is limited to 120,000 machine hours per year on a single-shift basis. Direct material and direct labor costs are variable. The following data are available for planning purposes: @ (Click the icon to view the data.) Requirements (a) Given the capacity constraint, determine the production levels for the three products that will maximize prots. (b) If the company authorizes overtime in order to produce more units of XL3, the direct labor cost per unit will be higher by 50% because of the overtime premium. Materials cost and variable overhead cost per unit will be the same for overtime production as regular production. Is it worthwhile operating overtime? Data table TOTAL UNIT DEMAND FOR PRODUCT NEXT YEAR XL1 190,000 XL2 190,000 XL3 190,000 SALES PRICE PER UNIT $ 14.80 16.60 11.00 DIRECT DIRECT VARIABLE MATERIALS LABOR COST OVERHEAD COST PER UNIT PER UNIT COST PER UNIT $ 4.30 $ 3.50 $ 3.50 4.50 3.60 3.60 5.00 2.00 2.00 MACHINE HOURS PER UNIT 0.25 0.35 0.25 Requirement (a) Given the capacity constraint, determine the production levels for the three products that will maximize prots. Begin by calculating the contribution margin per machine hour for each product. (Abbreviations used: MH = Machine hour) Sales price per unit Total variable cost per unit Contribution margin per unit MH required per unit Contribution margin per MH Determine the production levels for the three products that will maximize profits. Optimal production level (units) XL 1 XL2 XL3Requirement (b) If the company authorizes overtime in order to produce more units of XL3, the direct labor cost per unit will be higher by 50% because of the overtime premium. Materials cost and variable overhead cost per unit will be the same for overtime production as regular production. Is it worthwhile operating overtime? Begin by Begin by calculating the contribution margin per unit of XL3 under these circumstances. (Use a parentheses or a minus sign for a negative contribution margin per unit.) _ales _rice per unit Total variable cost per unit Contribution margin per unit Is it worthwhile operating overtime? It is worthwhile operating overtime because the unit contribution margin of XL3 using overtime is positive