Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price $400 $600 $1,200 Unit costs: Variable manufacturing (220) (280) (500) Fixed manufacturing (80) (130) (
Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Small Medium Large
Unit selling price $400 $600 $1,200
Unit costs:
Variable manufacturing (220) (280) (500)
Fixed manufacturing (80) (130) (240)
Fixed selling and administrative (60) (75) (120)
Unit profit $ 40 $ 115 $340
Demand in units 100 120 100
Machine-hours per unit 20 40 100
The maximum machine-hours available are 6,000 per week.
What is the contribution margin per machine-hour for a medium appliance?
Select one:
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