Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available: Futons $550 $390 Sales price Variable costs Recliners $750 $415 The company can manufacture 4 futons per machine hour or 2 recliner(s) per machine hour. The company's production capacity is 6,600 machine hours per month. What is the contribution margin per machine hour for recliners? OA. $4,660 OB. $2,330 OC. $1,340 OD. $670 and

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available:
Futons
$550
$390
Sales price
Variable costs
Recliners
$750
$415
The company can manufacture 4 futons per machine hour or 2 recliner(s) per machine hour. The company's production capacity is 6,600 machine hours per month. What is the contribution margin
per machine hour for recliners?
OA. $4,660
OB. $2,330
OC. $1,340
OD. $670
and
Transcribed Image Text:Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available: Futons $550 $390 Sales price Variable costs Recliners $750 $415 The company can manufacture 4 futons per machine hour or 2 recliner(s) per machine hour. The company's production capacity is 6,600 machine hours per month. What is the contribution margin per machine hour for recliners? OA. $4,660 OB. $2,330 OC. $1,340 OD. $670 and
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