Author Question: Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. ... (Read 140 times)

ahriuashd · **on:** Mar 6, 2021

Question 1

Product mix decisions ________.
◦ have a long-run focus
◦ help determine how to maximize operating profits
◦ focus on selling price per unit
◦ help maximizing opportunity costs

Question 2

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

Direct labor ($15 per hour)

15

30

Variable support costs ($5 per machine-hour)

5

10

Fixed support costs

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

mistyjohnson · **Reply #1 on:** Mar 6, 2021

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