Question
3. Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per
3. Braun'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 $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 10i. Which model has the greatest contribution margin per unit?ii. Which model, has the greatest contribution margin per machine-hour?iii. If there is excess capacity, which model is the most profitable to produce?iv. If there is a machine breakdown, which model is the most profitable to produce?
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