Healthier Living Company manufactures two products-toaster ovens and bread machines.The following data are available: Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Healthier Living's production capacity is 1,800 machine hours per month.
-What is the contribution margin per machine hour for toaster ovens? (Round your answer to nearest cent)

Question

Healthier Living Company manufactures two products-toaster ovens and bread machines.The following data are available:  Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Healthier Living's production capacity is 1,800 machine hours per month.
-What is the contribution margin per machine hour for toaster ovens? (Round your answer to nearest cent)

Quizplus · Accepted Answer

Contribution margin per machine hour = (Selling price per unit - Variable cost per unit) / Machine hours per unit= ($300 - $65) / 10= $235

Healthier Living Company Manufactures Two Products-Toaster Ovens and Bread Machines