9.

Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.

	Carpet Kleen				Floor Deodorizer
Units produced and sold		4,000				3,000
Machine hours used		4,000				1,500
Sales price per unit	$	6			$	12
Variable cost per unit	$	4			$	10

Fixed costs of $39,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. The contribution margin per machine hour for Floor Deodorizer is:

Multiple Choice

• $0.25.

• $2.00.

• $4.00.

• $6.00.

• $24.00.