K Small Medium Large $430 $650 $1,220 A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Variable manufacturing (230) (300) (510) Fixed manufacturing (120) (180) (290) Fixed selling and administrative (70) (95) (160) Unit profit $10 $75 $260 Demand in units Machine-hours per unit 100 170 100 40 60 100 The maximum machine-hours available are 6,500 per week. What is the contribution margin per machine-hour for a medium appliance? OA. $5.83 B. $9.58 OC. $1.25 OD. $0.44
K Small Medium Large $430 $650 $1,220 A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Variable manufacturing (230) (300) (510) Fixed manufacturing (120) (180) (290) Fixed selling and administrative (70) (95) (160) Unit profit $10 $75 $260 Demand in units Machine-hours per unit 100 170 100 40 60 100 The maximum machine-hours available are 6,500 per week. What is the contribution margin per machine-hour for a medium appliance? OA. $5.83 B. $9.58 OC. $1.25 OD. $0.44
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:K
Small
Medium
Large
$430
$650
$1,220
A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Unit selling price
Unit costs:
Variable manufacturing
(230)
(300)
(510)
Fixed manufacturing
(120)
(180)
(290)
Fixed selling and administrative
(70)
(95)
(160)
Unit profit
$10
$75
$260
Demand in units
Machine-hours per unit
100
170
100
40
60
100
The maximum machine-hours available are 6,500 per week.
What is the contribution margin per machine-hour for a medium appliance?
OA. $5.83
B. $9.58
OC. $1.25
OD. $0.44
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