Brigg's Breakfast Appliances manufactures two products: Waffle Makers and Coffee Makers. The following data are available: The company can manufacture two waffle makers per machine hour and three coffee makers per machine hour. The company's production capacity is 1,200 machine hours per month.
What is the contribution margin ratio for waffle makers?

Question

Brigg's Breakfast Appliances manufactures two products: Waffle Makers and Coffee Makers. The following data are available:  The company can manufacture two waffle makers per machine hour and three coffee makers per machine hour. The company's production capacity is 1,200 machine hours per month.
What is the contribution margin ratio for waffle makers?

Quizplus · Accepted Answer

To calculate the contribution margin ratio for waffle makers, we need to know the selling price and variable cost per unit for waffle makers. The question does not provide this information. Without this information, we cannot calculate the contribution margin ratio for waffle makers.

However, we can make a decision based on the available data. Since the company can manufacture two waffle makers per machine hour and three coffee makers per machine hour, it is more efficient to produce coffee makers. Therefore, the best choice for the company would be to focus on producing coffee makers to maximize their production capacity and profitability.

Brigg's Breakfast Appliances Manufactures Two Products: Waffle Makers and Coffee