n Problem 21.4A (Static) Determining the Most Profitable Product Given Scarce Resources (LO21-1, LO21- 2, LO21-3, LO21-4) 34 ts Insiteful Instruments produces two models of binoculars. Information for each model is as follows: eBook Sales price per unit Direct materials Model 100 $ 200 Model 101 $ 215 Print Costs and expenses per unit: Direct labor Manufacturing overhead. (applied at the rate of $18 per machine-hour, 1/3 of which is fixed and 2/3 variable) $ 51 33 $ 38 30 Variable selling expenses Total costs and expenses per unit Profit per unit eferences Machine-hours required to produce one unit 36 30 72 15 150 155 $ 50 2 $ 60 4 Total manufacturing overhead amounts to $180,000 per month, one-third of which is fixed. The demand for either product is sufficient to keep the plant operating at full capacity (10,000 machine-hours per month). Assume that only one product is to be produced in the future. a. Prepare a schedule showing the contribution margin per machine-hour for each product. b. Which of the two products should be discontinued?