1. Braun'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:

Which model has the greatest contribution margin per unit?
a. Model X
b. Model Y
c. Model Z
d. Models X and Y
2. Which model has the greatest contribution margin per machine-hour?
a. Model X
b. Model Y
c. Model Z
d. Models Y and Z
3. If there is excess capacity, which model is the most profitable to produce?
a. Model X
b. Model Y
c. Model Z
d. Models X and Y
4. If there is a machine breakdown, which model is the most profitable to produce?
a. Model X
b. Model Y
c. Model Z
d. Models Y and Z

Transcribed Image Text:

Model X Model Y Model Z S60 S70 Selling price Direct materials Direct labor (S12 per hour) Variable support costs (S4 per machine-hour) S50 12 12 24 Fixed support costs 10 10 10