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Moving to another question will save this response. Question 14 Question 14 of 15 Zahid Company manufactures two different product lines, Model X, and Model
Moving to another question will save this response. Question 14 Question 14 of 15 Zahid Company manufactures two different product lines, Model X, and Model Y. Considerable market demand exists for these models. The following per unit data apply: 7 points Save Answer Selling price Direct materials Direct labor Variable manufacturing overheads Fixed manufacturing overheads Model X $100 25 30 20 10 Model Y $120 20 40 30 10 Note: Model X needs 2 machine hours per unit and Model Y needs 3 machine hours per unit. Required: a. For each model, compute the contribution margin per unit. (2 marks) b. For each model, compute the contribution margin per machine hour. (2 marks) C. 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 Y is only 100 units each. How many units of product X and Y will be produced in order to maximize profit. (1 marks) acer S 1 R G 2 N
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