Harley Davidson sells motorcycle X and Y. Motorcycle X sells for $10000 has variable cost (labor and material) of $2000 and requires 10 hours of use of
machinery to produce. Motorcycle Y sells for $12000 has variable costs (labor and material) of $8000 and requires 2 hours of use of machinery to produce.
Harley Davidson has excess capacity of 5000 hours of use of machinery. Which motorcycle should it produce? a. Motorcycle X because it has a higher contribution margin of $8000. b. Motorcycle Y because it has a higher contribution margin per hour of $2000. c. Motorcycle X because it has a higher contribution margin per hour of $4000. d. Motorcycle Y because it has a higher contribution margin of $4000