27. Lie Around Furniture manufactures two products: Futons and Recliners. The fo

Question

27. Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available Futons $500 $360 Recliners $720 $395 Sales price Variable costs The company can manufacture 3 futons per machine hour and 2 recliner per machine hour. The company's production capacity is 7,800 machine hours per month. What is the contribution margin per machine hour for recliners? A.$3,345 B.$2,230 C.$975 D.$650 28. Rubino Corporation desires a December 31 ending inventory of 1,000 units. Budgeted sales for December are 3,450 units. The November 30 in units? ventory was 550 units. What are budgeted purchases in C A.4,450 ? B·5,000 C.3,000 ? D.3,900

Explanation / Answer

27.

Option D. $650 is correct answer.

28.

Option D. 3,900 is correct answer.

Recliners Sales price $720 Less: Variable costs $395 Contribution margin $325 Unit per machine hour 2 Contribution margin per machine hour $650

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