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Simpson 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:
Selling price
Direct materials
Direct labour ( $10 per hour)
Model X Model Y Model Z
$104,$715,$120
$30,$30,$30
Variable support costs ( $5 per machine hour)
$10
$15
$10
Fixed support costs
$20
$10
$10
$20
$20
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 x=
Model Y=
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