QUESTION

QUESTION 5

Fresco Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:

	Food Processors	Espresso Makers
Sales price	$135	$245
Variable costs	$90	$180

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month. What is the contribution margin per machine hour for espresso machines?

		$675
		$195
		$65
		$90