This Question: 1 pt8 of 40 (6 complete) This Test: 40 pts pos... Pastryworks Com

Question

This Question: 1 pt8 of 40 (6 complete) This Test: 40 pts pos... Pastryworks Company manufactures two products -toaster ovens and bread machines. The following data are available: Sales price Variable costs Toaster Ovens $100 $40 Bread Machines $150 $70 Pastryworks can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Pastryworks' production capacity is 2,000 machine hours per month. What is the contribution margin per machine hour for toaster ovens? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.) O A. $320 O B. $25 O C. $360 OD, $13 Click to select your answer

Explanation / Answer

Answer: C. $360

Contribution margine per machine hour for toaster oven is $360.

Explanation:

.1667 hours

Sr.No. Purticuler's Amount A Selling price of per toaster oven $100 B Variable cost per toaster oven $40 C Conribution per toaster oven (A-B) $60 D Hours required to produce one toaster oven (1/6)

.1667 hours

E Toaster oven produced per hour 6 F Contribution margine per machine hour for toaster oven (C*E) $360

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