Tawatinaw Trikes manufactures three different product lines, Models X$,$ Y$,$ and Z$.$ The following per$-$unit data apply:

Model X Model Y Model Z

Selling price $$500$ $$600$ $$700$

Direct materials $$70$ $$80$ $$100$

Direct labour $($$$25$ per hour$)$ $$50$ $$75$ $$100$

Variable support costs $($$$4$ per machine hour$)$ $$20$ $$28$ $$12$

Fixed allocated costs $$40$ $$60$ $$80$

Required: If there are a limited number of machine hours available and demand exceeds the total machine hours available, in what order should the models be produced to maximize total contribution margin?

Answer rating: 100% (QA)

To determine the order in which Tawatinaw Trikes should produce the models to maximize total contrib... View the full answer