Refer to Figure 13-5. What is the contribution margin per unit of scarce resource (machine time) for Model K-3?
A) $24
B) $12
C) $6
D) $14
E) $28

Question

Quizplus · Accepted Answer

The contribution margin per unit of scarce resource (machine time) for Model K-3 is calculated by dividing the contribution margin per unit by the amount of machine time required per unit. The contribution margin per unit for Model K-3 is $48, and it requires 2 hours of machine time per unit. Therefore, $48 / 2 hours = $24 per hour of machine time.