Question
Please explain for points! 20 . Kawasaki sells motorcycles Ninja Z X -6R and Ninja ZX-14R . The Ninja ZX-6R sells for $10,000, has variable
20. | Kawasaki sells motorcycles Ninja ZX-6R and Ninja ZX-14R. The Ninja ZX-6R sells for $10,000, has variable cost (labor and material) of $2,000, and requires 10 hours of use of machinery to produce. The Ninja ZX-14R sells for $12,000, has variable costs (labor and material) of $8,000, and requires 2 hours of use of machinery to produce. Kawasaki has excess capacity of 5,000 hours of use of machinery. Which motorcycle should it produce? | ||
A) | The Ninja ZX-6R because it has a higher contribution margin of $8,000. | ||
B) | The Ninja ZX-14R because it has a higher contribution margin per hour of machinery use of $2,000. | ||
C) | The Ninja ZX-6R because it has a higher contribution margin per hour of machinery use of $4,000. | ||
D) | The Ninja ZX-14R because it has a higher contribution margin of $4,000. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started