Which model has the highest contribution margin per direct labor hour?

2.) Which model has the highest contribution margin per unit of production sold?

3.) If machine capacity is the only limiting constraint, then which of the 3 products should Wall produce?

4.) If there is no market constraint, then which products should Wall produce?

 

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Wall Corporation's product line includes three different models of a special tool to share metal products, they are X, Y and Z. There is so much amount of demand for all the models. The following information were available: X 80 20 20 Variable overhead cost 10 The direct labor wage rate is P10 per hour. The variable overhead cost is applied at the rate of P5 per machine hour. Selling price Direct material cost Direct labor cost Y 70 Z 60 20 20 20 10 5 5 Wall Corporation's product line includes three different models of a special tool to share metal products, they are X, Y and Z. There is so much amount of demand for all the models. The following information were available: X 80 20 20 Variable overhead cost 10 The direct labor wage rate is P10 per hour. The variable overhead cost is applied at the rate of P5 per machine hour. Selling price Direct material cost Direct labor cost Y 70 Z 60 20 20 20 10 5 5

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