i need the answer quickly All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of marketdemand exists for all models. The table below reports the prices and costs per unit of each product:Selling priceDirect materials costModel A Model B Model C$ ?$75$83$8$8$8Direct labor costs ($15 per labor hour)Variable support costs ($5 per machine hour)$23$23$45$5$10$15Fixed support costs$15$15$15Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A becomethe most profitable model to produce?Select one:0a. Any price above $83O b. Any price above $36Oc. Any price above $53Od. None of these options are correct.°e. Any price above $70

In this question we need to find out the sale price of Model A, In these cases, statement of ranking…

All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Selling price Direct materials cost Model A Model B Model C $? $75 $83 $8 $8 $8 Direct labor costs ($15 per labor hour) $23 $23 $45 Variable support costs ($5 per machine hour) $5 $10 $15 Fixed support costs $15 $15 $15 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?

All Terrain Tires manufactures three different off-road ATV tires: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Selling price Direct materials cost Model A Model B Model C $? $75 $83 $8 $8 $8 Direct labor costs ($15 per labor hour) $23 $23 $45 Variable support costs ($5 per machine hour) $5 $10 $15 Fixed support costs $15 $15 $15 Assuming that machine hours are limited (i.e., this is the constrained resource), at what price does Model A become the most profitable model to produce?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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