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Answer the Following Questions Using the Information Below:
Dynondo's Brakes

Question 159

Multiple Choice

Answer the following questions using the information below:
Dynondo's Brakes 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$60$70 Direct materials 666 Direct labor ( $12 per hour)  121224 Variable support costs ( $4 per machine-hour)  488 Fixed support costs 101010\begin{array}{lrrr}&\text { Model X }&\text { Model Y }&\text { Model Z }\\\text { Selling price } & \$ 50 & \$ 60 & \$ 70 \\\text { Direct materials } & 6 & 6 & 6 \\\text { Direct labor ( } \$ 12 \text { per hour) } & 12 & 12 & 24 \\\text { Variable support costs ( } \$ 4 \text { per machine-hour) } & 4 & 8 & 8 \\\text { Fixed support costs } & 10 & 10 & 10\end{array}
-Which model has the greatest contribution margin per unit?


A) Model X
B) Model Y
C) Model Z
D) Both Model X and Model Y have the highest and same contribution margin per unit

Correct Answer:

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