A.C.Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small,medium,and large.Product information is provided below.

The maximum machine-hours available are 6,500 per week.
What is the contribution margin per machine-hour for a medium appliance?
A)$0.54
B)$1.07
C)$4.86
D)$7.79

Question

A.C.Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small,medium,and large.Product information is provided below.

The maximum machine-hours available are 6,500 per week.
What is the contribution margin per machine-hour for a medium appliance?
A)$0.54 
B)$1.07 
C)$4.86 
D)$7.79

Quizplus · Accepted Answer

Contribution margin = $620 - $280 = $340
Contribution margin per machine hour = $340 / 70 = $4.86

ACTech Manufacturing Appliances Manufactures Three Sizes of Kitchen Appliances: Small,medium,and