Osmond Inc. manufactures three product lines: MH123, KL456, and PT789. Currently, all three product lines are...

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Osmond Inc. manufactures three product lines: MH123, KL456, and PT789. Currently, all three product lines are in demand. For the year 2021, the following per unit data has been compiled by the company's cost accountant: MH123 KL456 PT789 Selling price $176.00 $199.00 $279.00 Direct materials $45.00 $45.00 $45.00 Direct labour ($18 per labour hour) $54.00 $54.00 $108.00 Variable support costs ($8 per machine-hour) $8.00 $16.00 $16.00 Fixed support costs $20.00 $20.00 $20.00 Required (A) Compute the contribution margin per unit for each of the product lines. (B) Compute the contribution margin per machine hour per unit for each of the product lines. (C) For 2021, assume that demand will be 400 units of the MH123,200 units for the KL456, and 300 units for the PT789, and that capacity is limited to 1,200 machine hours. Given this information, how many units of each product line should the company produce? Osmond Inc. manufactures three product lines: MH123, KL456, and PT789. Currently, all three product lines are in demand. For the year 2021, the following per unit data has been compiled by the company's cost accountant: MH123 KL456 PT789 Selling price $176.00 $199.00 $279.00 Direct materials $45.00 $45.00 $45.00 Direct labour ($18 per labour hour) $54.00 $54.00 $108.00 Variable support costs ($8 per machine-hour) $8.00 $16.00 $16.00 Fixed support costs $20.00 $20.00 $20.00 Required (A) Compute the contribution margin per unit for each of the product lines. (B) Compute the contribution margin per machine hour per unit for each of the product lines. (C) For 2021, assume that demand will be 400 units of the MH123,200 units for the KL456, and 300 units for the PT789, and that capacity is limited to 1,200 machine hours. Given this information, how many units of each product line should the company produce?

Answer rating: 100% (QA)

A Contribution margin per unit MH123 Selling price Variable costs 176 45 54 8 176 10... View the full answer