FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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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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