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Sauer Company sells folding chairs for$40.00 per unit. Variable cost is $15.00 per unit. Easy chair requires 4 direct labor hours and 2 machine hours

Sauer Company sells folding chairs for$40.00 per unit. Variable cost is $15.00 per unit. Easy chair requires 4 direct labor hours and 2 machine hours to produce. Which of the following is the correct contribution margin per machine hour?

a. $12.50

b. $0.08

c. None of these

d. $0.10

e. $6.25

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