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Simpson manufactures three different product lines: Model Model and, Model Z
Considerable market demand exists for all models. The following per unit data apply:
Selling price
Direct materials
Direct labour $ per hour
Model X Model Y Model Z
$$$
$$$
Variable support costs $ per machine hour
$
$
$
Fixed support costs
$
$
$
$
$
Required round your answers to nearest whole dollar:
a Compute the contribution margin per unit for each Model:
b Compute the contribution margin per machine hour for each Model:
Model
Model
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