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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.

Fairy Godmother Inc Production Information
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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