Homework Answers
| Product X | Product Y | Product Z | |
| Contribution Margin per Unit | 10 | 24 | 12 |
| Labor hours per unit | 2 | 6 | 4 |
| Contribution Margin per Hour | 5 | 4 | 3 |
| Hence, Product X makes the most profitable use of direct labor hours | |||
| Contribution margin = 1000*5 = $5,000 | |||
| b.Contribution Margin = 50*24 + 350*10 = $4,700 | |||
| Down by $300 | |||
| c.Mix would be 125 units of X, 125 units of Y and nothing of Z since it is least profitable | |||
| CM = $2000 | |||
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