What is the contribution margin per machine hour

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Reference no: EM132482241

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

                           Toaster Ovens          Bread Machines

Sales price             $100                    $150

Variable costs          $40                     $70

Question 1: Kitchen Convenience can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Kitchen Convenience's production capacity is 1600 machine hours per month. What is the contribution margin per machine hour for bread machines?

Option A $60

Option B $80

Option C $320

Option D $480

Reference no: EM132482241

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