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steposvetlana [31]
4 years ago
9

Kitchen Convenience Company manufactures two products - toaster ovens and bread machines. The following data are available:

Business
1 answer:
nekit [7.7K]4 years ago
7 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Bread Machines:

Sales price = $160

Variable costs = $70

Production capacity = 2,000 machine hours per month

Contribution margin =  Selling price - Variable cost

                                 = $160 - $70

                                 = $90

Contribution margin per machine hour for bread machines:

= Contribution margin × Unit per hour

= $90 × 4

= $360

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