Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 77 units of the Premium Model. The following per unit data apply:

The contribution per machine-hour is ________.
A) $24 for Standard, $24 for Premium
B) $144 for Standard, $144 for Premium
C) $18 for Standard, $18 for Premium
D) $4 for Standard, $4 for Premium

Question

Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 77 units of the Premium Model. The following per unit data apply:

The contribution per machine-hour is ________.

The contribution per machine-hour is ________.
A) $24 for Standard, $24 for Premium 
B) $144 for Standard, $144 for Premium 
C) $18 for Standard, $18 for Premium 
D) $4 for Standard, $4 for Premium

Quizplus · Accepted Answer

Standard $24 / 6 = $4; Premium $24 / 6 = $4

Kinnane's Fine Furniture Manufactures Two Models, Standard and Premium