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Lie Around Furniture manufactures twoproducts: Couches and Beds. The following data areavailable: Couches Beds Sales price $520 $720 Variable costs $390 $405 The company can
Lie Around Furniture manufactures twoproducts: Couches and Beds. The following data areavailable:
Couches
Beds
Sales price
$520
$720
Variable costs
$390
$405
The company can manufacture 4 couches per machine hour and 2 beds per machine hour. Thecompany's production capacity is10,100 machine hours per month.
What is the contribution margin per machine hour forcouches?
A.
$780
B.
$520
C.
$3,640
D.
$130
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