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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
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: Selling price Model X Model Y ModelZ $25 $30 $35 Direct materials 3 3 3 Direct labor ($6 per hour) 6 6 12 Variable support costs ($2 per machine-hour) 2 4 4 Fixed support costs 5 1 15 If there is excess capacity, then which model is the most profitable to produce? A. Model X B. Model Y OC Model Z D. Models X and Y
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