The maximum machine - hours available are 6,000 per week. What is the contribution margin per machine-hour for a medium appliance?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The maximum machine - hours available are 6,000 per week.
What is the contribution margin per machine-hour for a medium appliance?
Transcribed Image Text:The maximum machine - hours available are 6,000 per week. What is the contribution margin per machine-hour for a medium appliance?
A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Small
Medium
$400
$600
Unit selling price
Unit costs:
Variable manufacturing
Fixed manufacturing
Fixed selling and administrative
Unit profit
Demand in units
Machine-hours per unit
OA. $7.93
OB. $4.14
C. $0.38
OD. $0.64
(220)
(90)
(80)
$10
130
30
(310)
(170)
(75)
$45
120
70
Largo
$1,250
(520)
(280)
(170)
$280
130
130
GETTO
Transcribed Image Text:A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium $400 $600 Unit selling price Unit costs: Variable manufacturing Fixed manufacturing Fixed selling and administrative Unit profit Demand in units Machine-hours per unit OA. $7.93 OB. $4.14 C. $0.38 OD. $0.64 (220) (90) (80) $10 130 30 (310) (170) (75) $45 120 70 Largo $1,250 (520) (280) (170) $280 130 130 GETTO
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