Nordin 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 RM80 RM90 RM100 30 30 15 20 30 Selling price Direct materials Direct labor (RM10 per hour) Variable support costs (RM5 per machine-hour) Fixed support costs 10 10 20 20 20 (i) For each model, compute the contribution margin per unit. (6 marks) For each model, compute the contribution margin per machine-hour. (6 marks) If there is excess capacity, identify and justify the model which is the most profitable to produce. (4 marks) (iv) If there is a machine breakdown, identify and justify the model which is the most profitable to produce. (4 marks)
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