Question

Healthier Living Company manufactures two productslong dashtoaster ovens and bread machines. The following data are​ available: Toaster Ovens Bread Machines Sales price $ 100 $ 140 Variable costs $ 60 $ 60 Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Healthier​ Living's production capacity is 1 comma 600 machine hours per month. What is the contribution margin per machine hour for bread​ machines?

Answer 1

Answer:

Contribution margin per machine hour for bread​ machines = $320

Explanation:

From the question, the following can be deduced:

                              Selling price    Variable costs     Contribution/unit

Toaster Ovens       $100                 $60                     $40

Bread machines     $140                  $60                    $80

In each machine hour, six toaster ovens per machine hour and four bread machines  are manufactured

Total contribution margin per machine hour = 6*40+4*80 =$560

Of which contribution margin per machine hour for bread​ machines = 4*80=$320