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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
For Neo: 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:Â
Model X Model Y Model ZÂ
Selling price $50 $60 $70Â
Direct materials 6 6 6Â
Direct labor ($12 per hour) 12 12 24Â
Variable support costsÂ
($4 per machine-hour) 4 8 8Â
Fixed support costs 10 10 10Â
1. If there is an excess capacity, which model is the most profitable to produce? 2. If there is a machine breakdown, which machine is the most profitable to produce?
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