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Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit): Product X Product Y Product

Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit):

Product X Product Y Product Z

Selling price $ 70 $ 50 $ 60

Variable expenses:

Direct materials 21.00 15.00 4.20

Labor and overhead 21.00 22.50 37.80

Total variable expenses 42.00 37.50 42.00

Contribution margin $ 28.00 $ 12.50 $18.00

Contribution margin ratio 40 % 25 % 30 %

Demand for the company

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