1. 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	Model Z
Selling price	$56	$60	$80
Direct materials	6	6	6
Direct labor ($16 per hour)	16	16	32
Variable support costs ($5 per machine-hour)	5	10	10
Fixed support costs	11	11	11

Which model has the greatest contribution margin per machinehour?

A.Model X

B.Model Y

C.Model Z

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

2. Coroid Manufacturers Inc. is approached by a European customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:
Direct materials	$140
Direct labor	110
Manufacturing support	105
Marketing costs	55
Fixed costs:
Manufacturing support	175
Marketing costs	55
Total costs	640
Markup (40%)	256
Targeted selling price	$896

For Coroid Manufacturers Inc., what is the minimum acceptable price of this special order?

A.$ 480

B.$ 640

C.$ 410

D.$ 256

3. For decision making, a listing of the relevant costs ________.

A.will only include costs that are same among alternatives

B.will only include historical costs

C.will help the decision maker concentrate on the pertinent data

D.will include both sunk costs and opportunity costs