Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $42.00 $52.00 Variable costs $20.40 $24.80 Machine hours 0.60 0.80 A. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ B. Calculate total contribution margin if the additional 1,010 hours are: (1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ $
Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe Selling price $42.00 $52.00 Variable costs $20.40 $24.80 Machine hours 0.60 0.80 A. Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour $ $ B. Calculate total contribution margin if the additional 1,010 hours are: (1) Divided equally between the products. Basic Deluxe Total Contribution margin $ $ $ (2) Allocated entirely to the product identified above. Basic Deluxe Total Contribution margin $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Company manufactures and sells two products. Relevant per unit data concerning each product follow.
|
Product |
||||
|
Basic |
Deluxe |
|||
| Selling price | $42.00 | $52.00 | ||
| Variable costs | $20.40 | $24.80 | ||
| Machine hours | 0.60 | 0.80 |
A.
Compute the contribution margin per machine hour for each product.
|
Basic |
Deluxe |
|||
| Contribution margin per machine hour |
$ |
$ |
B.
Calculate total contribution margin if the additional 1,010 hours are:
(1) Divided equally between the products.
|
Basic |
Deluxe |
Total |
||||
| Contribution margin | $ | $ | $ |
(2) Allocated entirely to the product identified above.
|
Basic |
Deluxe |
Total |
||||
| Contribution margin | $ | $ | $ |
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