A manufacturing unit is evaluating its product mix under conditions of a limiting factor where the total available machine hours are restricted to 5,000 hours per month. Product Alpha has a selling price of 200 per unit and a variable cost of 120 per unit, requiring 2 machine hours per unit, while Product Beta has a selling price of 300 per unit and a variable cost of 180 per unit, requiring 4 machine hours per unit. In the context of marginal costing and decision making, which product should the management prioritize to maximize the total contribution and what is the specific contribution per unit of the limiting factor for that product?

Which of the following statements regarding Marginal Costing are NOT true? I. Closing stock valuation includes variable manufacturing costs. II. Marginal costing encourages lowering selling prices below variable costs in normal conditions. III. Under marginal costing, overheads are traditionally classified into functional heads (factory, admin, selling). IV. Marginal costing highlights the Cost-Volume-Profit relationship.

Which of the following are key assumptions of Marginal Costing? (a) All cost elements can be segregated into fixed and variable components. (b) Total fixed cost remains constant at all levels of output. (c) Total variable cost varies proportionally with output volume. (d) Selling price per unit remains constant across operating levels.