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fast please Zahid Company manufactures two different product lines. Model X and Model Y. Considerable market demand costs for these models The following per unit
fast please
Zahid Company manufactures two different product lines. Model X and Model Y. Considerable market demand costs for these models The following per unit data apply: Model X Modely Selling price $100 $120 Direct materials 25 20 Direct labor 30 40 Variable manufacturing overheads 20 30 Fixed manufacturing overheads 10 10 Note: Model X needs 2 machine hours per unit and Model Y needs 3 machine hours per unit. Required: 2. For each model compute the contribution margin per unit. (2 marks) b. For each model compute the contribution margin per machine-hour (2 marks) if there is excess capacity and no constraint, which model is the most profitable to produce? Why? (1 marks) d. If there is a machine breakdown and machine hours are limited, which model is the most profitable to produce and why? (1 marks) e. Suppose total number of machine hours are limited to 300 hours and maximum demand for the Model X and Model is only 100 units each. How many units of product X and Y will be produced in order to maximize profit (1 marks) Step by Step Solution
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