### Contribution Margin Analysis**Question 28:****a. What is the contribution margin per machine hour for each product?** *(Round your answers to 2 decimal places.)*| Contribution Margin per Machine Hour ||--------------------------------------|| Product A || Product B || Product C |![Graph or Table: Contribution Margin per Machine Hour for each Product]**b. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?**- Product A- Product B- Product CThis section of the educational content focuses on analyzing the contribution margin per machine hour for different products. The table provided should be filled with the respective data, and it is crucial to decide on the production focus based on the computed margins and given assumptions about demand. **Pasadena Corp. Production Analysis**Pasadena Corp. manufactures three products and is currently experiencing a shortage of machine hours, as one of its two machines is down—leaving only 300 hours available for the month. Below is the information pertaining to the selling price, costs, and labor requirements for each product:### Product Information| | Product A | Product B | Product C ||--------------|------------|------------|------------|| **Selling Price** | $5.25 | $14.00 | $4.25 || **Variable Cost per Unit** | $5.00 | $6.00 | $3.00 || **Machine Hours per Unit** | 0.25 | 2.00 | 1.25 |### Task1. **Contribution Margin per Unit**: Calculate the contribution margin per unit for each product. (*Round your answers to 2 decimal places.*)2. **Contribution Margin per Machine Hour**: Calculate the contribution margin per machine hour for each product. (*Round your answers to 2 decimal places.*)### Contribution Margin Table*(Values to be calculated and inserted below)*| **Product** | **Contribution Margin per Unit** ||--------------|----------------------------------|| Product A | [Insert value] || Product B | [Insert value] || Product C | [Insert value] |### Instructions for Calculation- **Contribution Margin per Unit** is calculated as the Selling Price minus the Variable Cost per Unit.- **Contribution Margin per Machine Hour** is calculated as the Contribution Margin per Unit divided by Machine Hours per Unit.Use these calculations to determine how best to allocate the limited machine hours available to maximize profitability.

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Description: ### Contribution Margin Analysis**Question 28:****a. What is the contribution margin per machine hour for each product?** *(Round your answers to 2 decimal places.)*| Contribution Margin per Machine Hour ||--------------------------------------|| P

Solution a: Product A Product B Product C Selling price per unit $5.25 $14.00 $4.25…

Answered: 28 A What is he contribution margih per…

Business

Accounting

28 A What is he contribution margih per machine hour for each product? (Round your answers to 2 dec Combution Margn per Machine Hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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EX 22
How many units of A should be produced to maximize the profit of company?
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