Springer Products manufactures three different product lines, ...

[Awilson837]

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

Variable support costs ($7 per machine-hour)

7

14

14

Fixed support costs

11

11

11

If there is a machine breakdown, 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

[sylvia]

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[Awilson837]

Thanks for the timely response, appreciate it

[lindahyatt42]

Excellent