Management at Generic Chemical Company is evaluating its product mix in an attempt to maximize profits. For the past two years, Generic has produced four products, and all have large markets in which to expand market share. Heinz Bexer, Generic's controller, has gathered data from current operations and wants you to analyze them for him. Sales and operating data are as follows:

Required
1. Compute the machine hours needed to produce one unit of each product.
2. Determine the contribution margin per machine hour for each product.
3. Which product line(s) should be targeted for market shareexpansion?

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Product Prdct ProdutProduct AZI BY7 CX5 Variable production costs $71,000 $91,000 91,920 $97,440 Variable selling coses Fixed producrion costs Fixed administrative cos 3,400 5.400 S6,240 S10,080 Total sales Units produced and sold Machine hours used S10,200 S5,400 $12,480 S30,160 $20,400 $21,600 $29,120 S18,480 $122,000 $136,000 $156,400 $161,200 85,000 45,000 26,000 14,000 17,000 18,000 20,800 16,800 Generic's scarce resource, machine hours, is being used to full capaciry