The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The compan y's production capacity is 1,200 machine hours per month. What is the contribution margin per machine hour for food processors?
1 answer:
Answer:
The contribution margin per machine hour is $150.
Explanation:
Note : The missing part of the question is
Food Processor Espresso Machines
Sales price $125 $225
Variable costs $50 $150
Solution
Contribution Margin per Machine = Sales Price - Variable Cost
=$125 - $50
=$75
Contribution Margin = Contribution per Machine × Number of Machines Produced in 1 Machine Hour
= $75 * 2
= $150
Thus, the contribution margin per machine hour for food processors is $150.
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