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30. Pedro Machado is majoring in finance at SDSU and has always maintained a straight A average. However, he still has to support himself by
30. Pedro Machado is majoring in finance at SDSU and has always maintained a straight "A" average. However, he still has to support himself by making ceramic cups and saucers in his spare time. He is paying $800 rent each month in order to have a second bedroom to use in his business. If Pedro was not in this business he would rent a one bedroom apartment for $600 per month. Pedro only has 28 hours available each week to devote to the production of cups and saucers. He has given you the following additional cost information about his business and has asked you to calculate the contribution margin per unit of scarce resource for his two products: Cups Saucers $9.00 $15.00 10.00 Selling Price Cost of Materials Allocated cost of rent Time to make each one 5.00 $100 $100 1 hour tof hour a. $5.00 and $8.00, respectively. b $5.00 and $4.00, respectively c. $1.43 and $2.21, respectively. d. $6.43 and $6.21, respectively. This problem is nonsense
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