Merauke Manufacturing produces three different products. The following per unit data is available.

Product A

Product B

Product C

Selling price

$120

$169

$189

Direct material costsper unit

(A) 30

(B) 35

(C) 50

Direct labour costs per unit

(a) 20

(B) 15

(C) 25

Variable overhead costs per unit

(a) 23

(b) 25

(c) 25

Fixed overhead costs per unit

(a) 40

(b) 45

(c) 50

It takes a machine 0.20 hours to produce product A, 0.75 hours to produce product B and 0.5 hours to produce product C.

Required: ( all answers should be supported by calculations; round to two decimal places)

a. Compute the contribution margin per unit of product

b. Assume a machine limit of 500 machine hours per month. Calculate the quantities of product A, B and C that should be produced

c. Assume that it is not possible to sell more than 600 units of each product per month.Calculate the quantities of product A, B and C that should be produced if machine hours are limited to 500 hours per month.