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10
1d
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itc@birzeit.edu data apply:
Model X
Model Y
Model
z?
Selling
price
$50
$60
$70
Direct materials
6
6
6
Direct labor ($12 per hour)
12
12
24
Variable support costs per machine-hour)
4
8
8
Fixed support costs
10
10
10
If there is excess capacity, which model is the most profitable to produce?
a. Model Y
itc.
birzeit.edu
 15:32 (8) Call us : +97(02)-2-2982012 10 1d E-mail : itc@birzeit.edu

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