Answer:
his contribution margin is $75750
Explanation:
given data
buys = $460
sell = $750
sales commission = 5%
store rent = $7000
pay for staff = $1800
to find out
what would be his contribution margin
solution
contribution margin is express as
contribution margin = sales - sales commission - cost of good sold .........1
put here value
contribution margin = 300 × 750 - ( 300 × 750) 5% - 300 × 460
contribution margin = 75750
so his contribution margin is $75750
Answer:
The company should produce 7,500 bread machines to maximize profit
Explanation:
Given:
Toaster Ovens Bread Machines
Sales Price per unit 60 135
Less: variable cost per unit 38 75
Contribution Margin per unit 22 60
Machine hours per unit 1 2
Now,
Contribution Margin per Machine Hour = 
thus,
Contribution Margin per Machine Hour 22 30
Since,
The Contribution Margin per Machine Hour for the bread is more, therefore to maximize profits the kitchen company should produce Breads machines.
also,
Number of units to be produced = 
= 
= 7,500 units
I think a is the correct answer let me know if This helps