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

question 211

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:
$\begin{array}{lrrr}&\text { Model X }&\text { Model Y }&\text { Model Z }\\\text { Selling price } & \$ 50 & \$ 60 & \$ 70 \\\text { Direct materials } & 6 & 6 & 6 \\\text { Direct labor ( } \$ 12 \text { per hour) } & 12 & 12 & 24 \\\text { Variable support costs ( } \$ 4 \text { per machine-hour) } & 4 & 8 & 8 \\\text { Fixed support costs } & 10 & 10 & 10\end{array}$
-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

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Definitions:

Non-metal Free Elements

Elements that exist in their natural state not combined with other elements and do not display metallic characteristics; examples include oxygen (O2) and nitrogen (N2).

Redox Reaction

A chemical reaction where the oxidation states of atoms are changed through the transfer of electrons.

Oxidation State

The measure of the degree of oxidation of an atom in a substance, indicating the number of electrons lost or gained by an atom.

Reaction

A chemical process in which substances interact to form new products typically characterized by a change in properties.