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Title: Ralph's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. ... Post by: ruskin on Nov 7, 2017 Ralph'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 $160 $180 $200 Direct materials 60 60 60 Direct labour ($20 per hour) 30 30 40 Variable support costs ($10 per machine-hour) 10 20 20 Fixed support costs 40 40 40 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 constrained capacity, which model is the most profitable to produce? Why? e. How can Ralph encourage her sales people to promote the more profitable model? Title: Re: Ralph's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. ... Post by: pacho on Nov 7, 2017 Content hidden
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