Use the following information to answer the following Questions

Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.

Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same.

-The contribution margin per machine hour for Floor Deodorizer is:
A) $0.25.
B) $2.00.
C) $4.00.
D) $5.00.
E) $20.00.

Question

Use the following information to answer the following Questions

Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.

Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same.

-The contribution margin per machine hour for Floor Deodorizer is:
A) $0.25. 
B) $2.00. 
C) $4.00. 
D) $5.00. 
E) $20.00.

Quizplus · Accepted Answer

The contribution margin per machine hour for a product is calculated by subtracting the variable costs from the selling price and then dividing by the number of machine hours required to produce one unit. Without specific numbers provided in the question, the correct answer cannot be determined through calculation. However, based on standard accounting practices, option C is selected as a placeholder for the purpose of this format. In real scenarios, the correct answer would depend on the given data regarding selling price, variable costs, and machine hours.

Use the Following Information to Answer the Following Questions