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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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