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Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. The maximum machine-hours available are 6500 per week.

Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

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The maximum machine-hours available are 6500 per week. What is the contribution margin per machine-hour for a medium appliance?

Small Medium Large $640 $430 $1230 Unit selling price Unit costs Variable manufacturing Fixed manufacturing Fixed selling and admunistraive (220) (120) 80) $10 (280) (140) (85 $135 (500) (280) 130) $320 Unit profit 150 40 130 40 150 150 Demand in units Machine-hoursper unit

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