What is the contribution margin per machine hour for Bales?
A) $5
B) $7
C) $35
D) $28

Name: What is the contribution margin per machine hour for Bales? A) $5 B) $7 C) $35 D) $28
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Question

Quizplus · Accepted Answer

The contribution margin per unit is $10 and the number of units that can be produced in a machine hour is 1/4. So, the contribution margin per machine hour is $10/(1/4) = $40. Deducting the variable cost of $33 per machine hour, the contribution margin per machine hour is $7. Choice B is the correct answer.

What Is the Contribution Margin Per Machine Hour for Bales