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?