QUESTION 10 TED Co manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price Direct materials Direct labor ($20 per hour) Variable support costs ($10 per machine-hour)10 Fixed support costs $160$180 60 30 20 40 $200 60 40 20 40 60 30 40 a. For each model, compute the contribution margin per unit b. For each model, compute the contribution margin per machine-hour. c. If there is excess capacity, which model is the most profitable to produce? Why? d. If there is a machine breakdown, which model is the most profitable to produce? Why? e. How can TED Co encourage the sales people to promote the more profitable model