Springer Products Manufactures Three Different Product Lines,Model X,Model Y,and Model

question 212

Multiple Choice

Springer Products 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:

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:

Many Buyers

A market condition characterized by the presence of numerous consumers or purchasers for goods and services.

Many Sellers

A characteristic of competitive markets where a large number of sellers offer similar or identical products, preventing any single seller from influencing market prices.

Distinguish

To recognize or treat someone or something as different from others.

Marginal Cost

The increase in total production costs resulting from the production of one additional unit of a product or service.