Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Variable costs per unit Skateboards $ 200 Scooters $400 120 310 (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin per unt ti Cosetution marg per machine hour Skateboards Scooters

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2
machine hours per unit. Scooters require 3 machine hours per unit.
Selling price per unit
Skateboards
$ 200
Scooters)
$ 400
120
310
Variable costs per unit
(a) Compute the contribution margin per unit
(b) Compute the contribution margin per machine hour
(a) Contribution margin pet und
Contion margm per machine hour
Skateboards
Scooters
Transcribed Image Text:Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Skateboards $ 200 Scooters) $ 400 120 310 Variable costs per unit (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin pet und Contion margm per machine hour Skateboards Scooters
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