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Pastryworks Company Manufactures Two Products-Toaster Ovens and Bread Machines Pastryworks Can Manufacture Six Toaster Ovens Per Machine Hour and Data

Question 131

Multiple Choice

Pastryworks Company manufactures two products-toaster ovens and bread machines.The following data are available:  Toaster Ovens  Bread Machines  Sales price $100$160 Variable costs $40$60\begin{array} { | l | r | r | } \hline & \text { Toaster Ovens } & \text { Bread Machines } \\\hline \text { Sales price } & \$ 100 & \$ 160 \\\hline \text { Variable costs } & \$ 40 & \$ 60 \\\hline\end{array} Pastryworks can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Pastryworks' production capacity is 1600 machine hours per month.What is the contribution margin per machine hour for toaster ovens? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)


A) $360
B) $25
C) $10
D) $400

Correct Answer:

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