Answer the Following Questions Using the Information Below

question 174

Multiple Choice

Answer the following questions using the information below:
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:

-If there is excess capacity, which model is the most profitable to produce?

• A)Model X
• B)Model Y
• C)Model Z
• D)Models X and Y

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Definitions:

Static Budget

A budget that does not change or adjust in response to variations in business activity levels.

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly tied to a specific product or service.

Supply Costs

The expenses incurred in acquiring the materials and services necessary for production or operations.

Square Feet

A unit of area measurement equal to a square that measures one foot on each side, commonly used in the United States.