Estela Company produces skateboards and scooters. Their per unit selling prices and variable costSkateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit.Selling price per unitVariable costs per unitMachine hours per unitSkateboards(a) Contribution margin per unit(b) Contribution margin per machine hour$2001202SkateboardsScootersRequired:(a) Compute the contribution margin per unit(b) Compute the contribution margin per machine hour.(Use cells A2 to 17 from the given information to complete this question.)$4003103Scooters

The contribution margin is computed by deducting variable expenses from the revenue sales. It is the…

Answered: Required: (a) Compute the contribution…

Business

Accounting

Required: (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Estela Company produces skateboards and scooters. Their per unit selling prices and variable cost
Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit.
Selling price per unit
Variable costs per unit
Machine hours per unit
Skateboards
(a) Contribution margin per unit
(b) Contribution margin per machine hour
$200
120
2
Skateboards
Scooters
Required:
(a) Compute the contribution margin per unit
(b) Compute the contribution margin per machine hour.
(Use cells A2 to 17 from the given information to complete this question.)
$400
310
3
Scooters

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