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The following data relates to Smash Company in questions 43-45: Smash Company has 4,000 machine hours available annually to manufacture tennis racquets. The following data
The following data relates to Smash Company in questions 43-45: Smash Company has 4,000 machine hours available annually to manufacture tennis racquets. The following data is available for the two racquet types made by Smash: Pro Racket Mid Racket Unit sales price $400 $100 Unit variable costs $100 $70 Annual demand 2,000 units 5,000 units Machine time 1.5 MH per unit 2 MH per unit 43) What is the contribution margin per machine-hour (MH) for one Pro racquet? A) $300/MH B) $200/MH C) $30/MH D) $15/MH 44) What is the contribution margin per machine hour for one Mid racquet? A) $300/MH B) $200/MH C) $30/MH D) $15/MH 45) If the firm makes 2,000 Pro rackets to meet demand, how many Mid rackets will the firm be able to make during the year? A) 1,500 Mid rackets B) 500 Mid rackets C) 5,000 Mid rackets D) None
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