Question
Pena Corporation manufactures two styles of lamps a Bedford Lamp and a Lowell Lamp. The following per unit data are available: Bedford Lamp Lowell Lamp
Pena Corporation manufactures two styles of lamps a Bedford Lamp and a Lowell Lamp. The following per unit data are available: Bedford Lamp Lowell Lamp Sales price $27 $35 Variable costs $16 $22 Machine hours required for one lamp 2 6 Total fixed costs are $32,000, and Pena can sell a maximum of 10,000 units of each style of lamp annually. Machine hour capacity is 30,000 hours per year. What is the 7 contribution margin per machine hour for the Lowell Lamp? A) $5.50 per machine hour B) $13.50 per machine hour C) $2.17 per machine hour D) $17.50 per machine hour
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