Which model has the greatest contribution margin per unit?

ACCOUNTING

Multiple Choice

Braun’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 6 6 6

Direct labor ($12 per hour) 12 12 24

Variable support costs ($4 per machine-hour) 4 8 8

Fixed support costs 10 10 10



Which model has the greatest contribution margin per unit?

a. Model X

b. Model Y

c. Model Z

d. Both Models X and Y


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