Norton's Mufflers Manufactures Three Different Product Lines: Model X, Model

Essay

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:
Required:
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?