Skate Magic manufactures three different product lines, Model TS, Model AY, and Model GG. 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 TS
B)Model AY
C)Model GG
D)both Models TS and AY

Question

Skate Magic manufactures three different product lines, Model TS, Model AY, and Model GG. 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 TS 
B)Model AY 
C)Model GG 
D)both Models TS and AY

Quizplus · Accepted Answer

B)Model Y since it has the greatest contribution margin per unit.

Skate Magic Manufactures Three Different Product Lines, Model TS, Model