Question 2 (pricing decision 3 points A company produces three different products, A, B, and...
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Question 2 (pricing decision 3 points A company produces three different products, A, B, and C. Considerable market demand exists for all models. The following per unit data provided Model A Model B Model C Selling price $50 S60 S70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs (54 per machine-hour) 4 8 8 Fixed support costs 10 10 10 a. Which model has the greatest contribution margin per unit? show that. (0.5 point) b. Which model has the greatest contribution margin per machine-hour? (0.5 point) c. If there is excess capacity, which model is the most profitable to produce? (1 point) c. If there is a machine breakdown, which model is the most profitable to produce? (1 point)
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