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What is the contribution margin per machine hour for toaster

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Reference no: EM131596620

Question - Home Bakery Company manufactures two products-toaster ovens and bread machines. The following data are available:

 

Toaster Ovens

Bread Machines

Sales price

$100

$160

Variable costs

$20

$70

Home Bakery Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Home Bakery's production capacity is 1,600 machine hours per month. What is the contribution margin per machine hour for toaster ovens?

$480

$25

$10

$360

Reference no: EM131596620

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