Pentals industry manufactures and sells two products. Relevant per-unit data concerning each product follow:

		Product
		Basic		Deluxe
Selling price		$44.00			$53.00
Variable costs		$22.00			$23.60
Machine hours		0.50			0.70

Calculate the contribution margin per machine hour for each product.

		Basic	Deluxe
Contribution margin per machine hour		$enter a dollar amount	$enter a dollar amount

Question Part Score

--/1.5

If 1,440 additional machine hours are available, which product should Pentals industry manufacture?

Bonita should manufacture the

select a product BasicDeluxe

product.

Question Part Score

--/0.5

Prepare an analysis showing the total contribution margin if 1,440additional hours are: (1) Divided equally between the products.

Basic		$enter a dollar amount
Deluxe		enter a dollar amount
Total contribution margin		$enter a total amount

(2) Allocated entirely to the product identified in part (b).

Total contribution margin

$enter the total contribution margin in dollars

Question Part Score

--/1