3. Hunter is an intelligent businessman. He has a knack for recognizing a good deal. Hunter was very interested when his friend, Leo, was trying to sell his Xbox 360. Leo was only asking $75 for the console and two controllers. Although slightly used, everything worked and was in good condition. If Hunter closes the deal, according to the nature of exchange, what is the agreed value of the items? a. They are worth $75 because Hunter paid that amount.

b. They are worth around $200, and Hunter got a great deal.

c. The exact price can’t be determined because it is relative. They are worth more than $75 for Hunter, but at the time, they were worth less than $75 for Leo.

d. Hunter and Leo can’t determine the worth of the used items because they didn’t compare the costs of the used items and new items.

e. The market determines the value of the items based on supply and demand, so it doesn’t matter what value Hunter or Leo gi

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z