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What is the contribution margin per machine hour

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Reference no: EM131592424

Question - Mama's Favorite Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:

Food Processors Espresso Makers

Sales price $125 $225

Variable costs $50 $150

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.

What is the contribution margin per machine hour for espresso machines?

A. $150

B. $75

C. $225

D. $1,125

Reference no: EM131592424

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