FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Joe'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:
M.X M.Y M.Z
Selling price $50 $60 $70
Direct materials $6 $6 $6
Direct labor ($12 per hour) $12 $12 $24
Variable support costs ($4 per machine-hour)
$4 $8 $8
Fixed support costs $10 $10 $10
Which model has the greatest contribution margin per unit?
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