Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market...
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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 $55 $69 $78 Direct materials 10 10 10 Direct labor ($15 per hour) 15 15 30 17 14 114 14 Fixed support costs 11 11 11 Variable support costs Market demand for X is 500 units; y, 200 units and Z, 300 units. If there is only 1000 labor hours per week, which product mix is the most profitable to produce? 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 $55 $69 $78 Direct materials 10 10 10 Direct labor ($15 per hour) 15 15 30 17 14 114 14 Fixed support costs 11 11 11 Variable support costs Market demand for X is 500 units; y, 200 units and Z, 300 units. If there is only 1000 labor hours per week, which product mix is the most profitable to produce?
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