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A company produces and sells three products. Product 1 Product 2 Product 3 Selling price per unit $70 $100 $200 Contribution margin per unit $50
A company produces and sells three products.
Product 1 | Product 2 | Product 3 | |
Selling price per unit | $70 | $100 | $200 |
Contribution margin per unit | $50 | $87 | $80 |
Fixed cost per unit | $10 | $14 | $25 |
Machine hours per unit | 5 | 5 | 10 |
This company has enough machine hours to make as many units as it can sell of its two most profitable products.
If the company has the opportunity to rent as many more machine hours as it needs, what is the most it would be willing to pay per machine hour?
(Round to the nearest dollar and cents.)
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