Description of this paper

Narly Skateboards manufactures three different pro...

Description

Solution


Question

Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: Base Model Long Model Trick Model Selling price $100 $120 $140 Direct materials 12 12 12 Direct labor ($12 per hour) 24 24 48 Variable support costs ($4 per machine-hour) 8 16 16 Fixed support costs 20 20 20 1) Which model has the greatest contribution margin per unit? A) base model B) long model C) trick model D) both the base model and the long model 2) Which model has the greatest contribution margin per machine-hour? A) base model B) long model C) trick model D) both the long model and the trick model 3) If there is excess capacity, which model is the most profitable to produce? A) base model B) long model C) trick model D) both the base model and the long model *I have attached a word document with the problems clearly laid out 1-3*

 

Paper#11119 | Written in 18-Jul-2015

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