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Healthier Cook Company Manufactures Two Products: Toaster Ovens and Bread

Question 58

Multiple Choice

Healthier Cook Company manufactures two products: toaster ovens and bread machines.The following data are available:
 Toaster Ovens  Bread Machines  Sale price $100$150 Variable costs $40$50\begin{array} { | l | l | l | } \hline &{ \text { Toaster Ovens } } &{ \text { Bread Machines } } \\\hline \text { Sale price } & \$ 100 & \$ 150 \\\hline \text { Variable costs } & \$ 40 & \$ 50 \\\hline\end{array}
Healthier Cook can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Healthier Cook's production capacity is 1600 machine hours per month.What is the contribution margin per machine hour for toaster ovens?


A) $360
B) $25
C) $400
D) $11

Correct Answer:

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