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Please answers all the questions from A-D . Thanks you. Dislikes for wrong answers. Fitzgerald Co. manufactures three different product lines: G45, K97, and G26.
Please answers all the questions from A-D . Thanks you. Dislikes for wrong answers.
Fitzgerald Co. manufactures three different product lines: G45, K97, and G26. The following per unit data apply: Selling price Direct materials Direct labour ( $15 per hour) Variable manufacturing support costs (\$5 per machine hour) Fixed manufacturing support costs Required (A) What is the contribution margin per unit for each product line? (B) If capacity is constrained by machine hours, which product line is the most profitable to produce? 3 (C) Assume that there is demand for 400 units for each product line, yet the company has a maximum of 3,200 machine hours for all production. Given this constraint, how many units of each product line should the company produce? (D) For short-term pricing decisions (e.g., one-time-only special order, product mix, outsourcing), what costs are relevant when there is available surplus capacity? What costs are relevant when there is no available surplus capacity Step by Step Solution
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