Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.     Product A Product B Unit contribution margin $ 49.00   $ 41.00   Demand   1,000 units   2,000 units Labor time   ¾ hour   ½ hour Machine time   1 hour   ½ hour   What is the contribution margin per machine hour for Product A?   Multiple Choice   $82.00   $41.00   $65.33   $49.00

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.
 

  Product A Product B
Unit contribution margin $ 49.00   $ 41.00  
Demand   1,000 units   2,000 units
Labor time   ¾ hour   ½ hour
Machine time   1 hour   ½ hour
 


What is the contribution margin per machine hour for Product A?

 

Multiple Choice

  •  

    $82.00

  •  

    $41.00

  •  

    $65.33

  •  

    $49.00

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