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Frank's Furniture Company manufactures three sizes of lounge chairs: small, medium and large. Product information is provided below. Small Medium Large Unit sellingprice$150$250$500 Unit costs:
Frank's Furniture Company manufactures three sizes of lounge chairs: small, medium and large. Product information is provided below.
SmallMediumLarge
Unit sellingprice$150$250$500
Unit costs:
Variablemanufacturing(60)(120)(200)
Fixedmanufacturing(40)(50)(120)
Variable selling andadministrative(30)(30)(30)
Unitprofit$20$50$150
Demand inunits100120100
Machine-hours perunit2040100
The maximum machine-hours available are 6000 per week.
What is the contribution margin per machine-hour for a large chair?
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