Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z Considerable market demand exists for all models The following per unit data apply Model X Model Y Model Z Selling price SSO $90 $100 Direct materials 30 30 30 Direct labor ($10 per hour) 15 15 20 Variable support costs (55 per machine hour) 10 10 Fixed support costs 20 20 20 a For each model, compute the contribution margin per unit b For each model, compute the contribution margin per machine hour C If there is excess capacity, which model is the most profitable to produce Why d Ifthere is a machine breakdown, which model is the most profitable to produce Why c How can Norton encourage her sales people to promote the more profitable model Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z Considerable market demand exists for all models The following per unit data apply a For each model, compute the contribution margin per unit b For each model, compute the contribution margin per machine hour c If there is excess capacity, which model is the most profitable to produce Why d If there is a machine breakdown, which model is the most profitable to produce Why e How can Norton encourage her sales people to promote the more profitable model

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Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit

Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z.

Considerable market demand exists for all models. The following per unit data apply:

Model X

Model Y

Model Z

Selling price

SSO

$90

$100

Direct materials

Direct labor ($10 per hour)

Variable support costs (55 per machine-hour)

Fixed support costs

For each model, compute the contribution margin per unit.

For each model, compute the contribution margin per machine-hour.

If there is excess capacity, which model is the most profitable to produce? Why?

Ifthere is a machine breakdown, which model is the most profitable to produce? Why?

How can Norton encourage her sales people to promote the more profitable model?

Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: a. For each model, compute the contribution margin per unit. b. For each model, compute the contribution margin per machine-hour. c. If there is excess capacity, which model is the most profitable to produce? Why? d. If there is a machine breakdown, which model is the most profitable to produce? Why? e. How can Norton encourage her sales people to promote the more profitable model