Question
Kitchen Convenience Company manufactures two products - toaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sales price $100 $160
Kitchen Convenience Company manufactures two products - toaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines
Sales price $100 $160
Variable costs $20 $70
Kitchen Convenience can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Kitchen Convenience's production capacity is 2,000 machine hours per month. What is the contribution margin per machine hour for bread machines?
A. $90
B. $540
C. $360
D. $80
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