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Fairy Godmother Inc. (FGI) makes two products: Glass Slippers and Crystal Balls. FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls. Both
Fairy Godmother Inc. (FGI) makes two products: Glass Slippers and Crystal Balls. FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls. Both products must be processed by the glass sanding machine, which has a capacity of 25,000 machine hours.
Per Unit Information | Glass Slippers | Crystal Balls |
---|---|---|
Selling Price | 25 | 15 |
Direct Materials | 8 | 5 |
Direct Labor | 8 | 4 |
Variable Overhead | 2 | 2 |
Variable Selling | 1 | 1 |
Machine Hours | 4 | .75 |
What is the contribution margin per machine hour for Glass Slippers?
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1.50
4
3
6
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