Question: Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit

Springer Products 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

Model Z

Selling price

$ 60$60

$ 70$70

$ 77$77

Direct materials

Direct labor

($ 13$13

per hour)

1313

2626

Variable support costs

($ 8$8

per

machineminushour)

1616

Fixed support costs

1414

Which model has the greatest contribution margin per

machineminushour?

Question content area bottom

Part 1

Model X

Model Y

Model Z

Both Model X and Model Y have the highest and same contribution margin per

machineminushour

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