The managerial accountant at Coffee and Tea Manufacturing manufactures three different types of coffee for consumers to enjoy in the marketplace. The managerial accountant reported the following information about the cases of coffee products Product A, Product B, and Product C:
Product A uses 1 machine-hour to produce 1 case of coffee; and, Products B and C use 2 machine hours to produce 1 case of coffee. There are 1,000 available machine hours to produce each product. Calculate the contribution margin per unit, the contribution margin ratio, and the available capacity per machine-hour for each coffee product A, B, and C.

Question

The managerial accountant at Coffee and Tea Manufacturing manufactures three different types of coffee for consumers to enjoy in the marketplace. The managerial accountant reported the following information about the cases of coffee products Product A, Product B, and Product C:
  Product A uses 1 machine-hour to produce 1 case of coffee; and, Products B and C use 2 machine hours to produce 1 case of coffee. There are 1,000 available machine hours to produce each product. Calculate the contribution margin per unit, the contribution margin ratio, and the available capacity per machine-hour for each coffee product A, B, and C.

Quizplus · Accepted Answer

The Answer of The managerial accountant at Coffee and Tea Manufacturing manufactures three different types of coffee for consumers to enjoy in the marketplace. The managerial accountant reported the following information about the cases of coffee products Product A, Product B, and Product C:
  Product A uses 1 machine-hour to produce 1 case of coffee; and, Products B and C use 2 machine hours to produce 1 case of coffee. There are 1,000 available machine hours to produce each product. Calculate the contribution margin per unit, the contribution margin ratio, and the available capacity per machine-hour for each coffee product A, B, and C.

The Managerial Accountant at Coffee and Tea Manufacturing Manufactures Three