Question
Pastryworks Company manufactures two productslong dashtoaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sales price $ 100$100 $ 140$140
Pastryworks Company manufactures two
productslong dashtoaster
ovens and bread machines. The following data are available:
Toaster Ovens | Bread Machines | |
Sales price | $ 100$100 | $ 140$140 |
Variable costs | $ 20$20 | $ 70$70 |
Pastryworks can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Pastryworks' production capacity is
2 comma 0002,000
machine hours per month. What is the contribution margin per machine hour for toaster ovens? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)
A.
$ 25$25
B.
$ 14$14
C.
$ 280$280
D.
$ 480
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started