Dynondo's Brakes 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 0000 Model X Model Y $69 6 13 8 $56 6 Direct labor ($13 per hour) 13 Variable support costs ($4 per machine-hour) 4 Fixed support costs 15 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unit
Dynondo's Brakes 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 0000 Model X Model Y $69 6 13 8 $56 6 Direct labor ($13 per hour) 13 Variable support costs ($4 per machine-hour) 4 Fixed support costs 15 15 Model Z $71 6 26 8 15 Which model has the greatest contribution margin per unit? Model X Model Y Model Z Both Model X and Model Y have the highest and same contribution margin per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dynondo's Brakes 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:
Model X Model Y
$56
$69
6
6
13
4
15
00
Selling price
Direct materials
Direct labor ($13 per hour)
Variable support costs ($4 per machine-hour)
Fixed support costs
13
8
15
Model Z
$71
6
26
8
15
Which model has the greatest contribution margin per unit?
Model X
Model Y
Model Z
Both Model X and Model Y have the highest and same contribution margin per unit
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