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14.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
14.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 $52 $60 $74 Direct materials 8 8 8 Direct labor ($16 per hour) 16 16 32 Variable support costs 5 10 10 Fixed support costs 12 12 12
If there is excess capacity, which model is the most profitable to produce?
(2 Points)
Model X
Model Y
Model Z
Both Model X and Model Y
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