A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

The maximum machine-hours available are 6,500 per week.
What is the contribution margin per machine-hour for a medium appliance?
A) $0.54
B) $1.07
C) $4.86
D) $7.79

Question

A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

The maximum machine-hours available are 6,500 per week.
What is the contribution margin per machine-hour for a medium appliance?
A) $0.54 
B) $1.07 
C) $4.86 
D) $7.79

Quizplus · Accepted Answer

Contribution margin = $620 - $280 = $340
Contribution margin per machine hour = $340 / 70 = $4.86

AC Tech Manufacturing Appliances Manufactures Three Sizes of Kitchen Appliances