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

$50

$66

$80

Direct materials

10

10

10

Direct labor ($15 per hour)

15

15

30

Variable support costs ($5 per machine-hour)

5

10

10

Fixed support costs

12

12

12

Which model has the greatest contribution margin per unit?

		Model X
		Model Y
		Model Z
		Both Model X and Model Y have the highest and same contribution margin per unit