Solved

Answer the Following Questions Using the Information Below:
Aurum Appliances

Question 153

Multiple Choice

Answer the following questions using the information below:
Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
 Small  Medium  Large  Unit selling price $400$600$1,200 Unit costs:  Variable manufacturing (220) (280) (500)  F1×ed manufacturing (80) (130) (240)  Fixed selling and administrative (60) (75) (120)  Unit profit $40$115$340 Demand in units 100120100 Machine-hours per unit 2040100\begin{array}{lcrrr}&\text { Small }&\text { Medium }&\text { Large }\\\text { Unit selling price }&\$400&\$600&\$1,200\\\text { Unit costs: }\\\text { Variable manufacturing } & (220) & (280) & (500) \\\text { F1×ed manufacturing } & (80) & (130) & (240) \\\text { Fixed selling and administrative } & (60) & (75) & (120) \\\text { Unit profit } & \$ 40 & \$ 115 & \$ 340\\\\\text { Demand in units } & 100 & 120 & 100 \\\text { Machine-hours per unit } & 20 & 40 & 100\end{array} The maximum machine-hours available are 6,000 per week.
-What is the contribution margin per machine-hour for a medium appliance?


A) $1.15
B) $2.34
C) $6.13
D) $4.90

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents