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AC Inc. manufactures two models of air compressors: 6 gallon and 12 gallon. The following per unit data apply: Per Unit 6 Gallon 12 Gallon
AC Inc. manufactures two models of air compressors: 6 gallon and 12 gallon. The following per unit data apply:
| Per Unit | 6 Gallon | 12 Gallon |
| Selling Price | $ 150 | $ 300 |
| Variable Costs | $ 80 | $ 204 |
| Allocated Fixed Costs | $ 20 | $ 35 |
| Number of Machine Hours Needed | 4 hrs. | 6 hrs. |
What is the contribution margin per machine-hour for both the 6 gallon and 12 gallon products respectively?
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