Your company anticipates demand for 5000 racing bike helmets at a price of $13 and 4000 commuter helmets at a price of $16. The company has a capacity of 4000 machine hours. Other information from the financial accounting system is listed below. What is the contribution margin per machine hour for the commuter helmets?
Your company anticipates demand for 5000 racing bike helmets at a price of $13 and 4000 commuter helmets at a price of $16. The company has a capacity of 4000 machine hours. Other information from the financial accounting system is listed below. What is the contribution margin per machine hour for the commuter helmets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Your company anticipates demand for 5000 racing bike helmets at a price of $13 and 4000 commuter helmets at a price of $16. The
company has a capacity of 4000 machine hours. Other information from the financial accounting system is listed below. What is the
contribution margin per machine hour for the commuter helmets?
Racing bike helmet
Direct material
Direct labor
Manufacturing overhead: variable
Non-manufacturing overhead: variable
Total variable cost
Manufacturing overhead: fixed
Non-manufacturing overhead: fixed
Total fixed cost
Total cost
Commuter helmet price
Machine hour
Commuter bike helmet
Direct material
Direct labor
Manufacturing overhead: variable
Non-manufacturing overhead: variable
Total variable cost
Manufacturing overhead: fixed
Non-manufacturing overhead: fixed
Total fixed cost
Total cost
Commuter helmet price.
Machine hour
$5.00
$2.00
$0.42
$0.27
$7.69
$1.43
$0.68
$2.11
$9.80
$13.00
0.43
$6.54
$1.89
$1.07
$0.86
$10.36
$1.78
$0.98
$2.76
$13.12
$16.00
0.57
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