Answer the following questions using the information below:
Riyadh Kitchen Company manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
The maximum machine-hours available are 6,000 per week.
-What is the contribution margin per machine-hour for a large chair?
A) $6.00
B) $3.60
C) $5.40
D) $2.50

Question

Answer the following questions using the information below:
Riyadh Kitchen Company manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
  The maximum machine-hours available are 6,000 per week.
-What is the contribution margin per machine-hour for a large chair?
A) $6.00 
B) $3.60 
C) $5.40 
D) $2.50

Quizplus · Accepted Answer

The contribution margin per machine-hour is calculated by dividing the contribution margin per unit by the machine hours required per unit. If the contribution margin per unit for a large chair is $5.40, then the contribution margin per machine-hour is also $5.40, assuming one machine-hour is required per unit.

Answer the Following Questions Using the Information Below