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A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price
A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Small | Medium | Large | |
Unit selling price | $410 | $600 | $1,220 |
Unit costs: | |||
Variable manufacturing | (240) | (310) | (510) |
Fixed manufacturing | (80) | (140) | (260) |
Fixed selling and administrative | (80) | (85) | (170) |
Unit profit | $10 | $65 | $280 |
Demand in units | 140 | 130 | 140 |
Machinehours per unit | 50 | 50 | 140 |
The maximum machinehours available are 6,500 per week.
What is the contribution margin per machinehour for a medium appliance?
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