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Pastryworks Company manufactures two productstoaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sales price $120 $150 Variable costs $40
Pastryworks Company manufactures two
productstoaster
ovens and bread machines. The following data are available:
Toaster Ovens | Bread Machines | |
Sales price | $120 | $150 |
Variable costs | $40 | $60 |
Pastryworks can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Pastryworks' production capacity is
1,600
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.)
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