Springer Products manufactures three different product lines, ...

[michelleunicorn]

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

$52

$60

$74

Direct materials

8

8

8

Direct labor ($16 per hour)

16

16

32

Variable support costs ($5 per machine-hour)

5

10

10

Fixed support costs

12

12

12

If there is excess capacity, which model is the most profitable to produce?
◦ Model X
◦ Model Y
◦ Model Z
◦ Both Model X and Model Y have same and highest profitability

[covalentbond]

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[michelleunicorn]

YES! Correct, THANKS for helping me on my review

[brbarasa]

Thanks for the timely response, appreciate it