Exercise 6-13

Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow.

Product

Basic Deluxe

Selling price$45 $51

Variable costs$30.60 $23.00

Machine hours0.40 0.80

Compute the contribution margin per machine hour for each product.(Round answers to 0 decimal places, e.g. 5,275.)

Contribution margin per machine hour

Basic

Deluxe

If1,090additional machine hours are available, which product should Helena manufacture?

Calculate total contribution margin if the additional1,090hours are:(Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.)

(1)Divided equally between the products.

Contribution margin

Basic

Deluxe

Total

(2)Allocated entirely to the product identified above.

Contribution margin

Basic

Deluxe

Total

Multiple Choice Question 47

For Swifty Corporation, sales is $2300000, fixed expenses are $560000, and the contribution margin ratio is 36%. What are the total variable expenses?

$828000

$2300000

$358400

$1472000

Multiple Choice Question 54

For Swifty Corporation, sales is $1340000 (6700 units), fixed expenses are $480000, and the contribution margin per unit is $100. What is the margin of safety in dollars?

$770000.

$100000.

$380000.

$1150000.