Healthier Living Company manufactures two products—toaster ovens and bread machines
The following data are available:
Toaster Ovens Bread Machines
Sales price $80 $150
Variable costs $60 $50
Healthier Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Healthier Living's production capacity is 1,800 machine hours per month. What is the contribution margin per machine hour for bread machines?
A) $20
B) $100
C) $400
D) $600
C .C)
Sales price $150
Variable costs 50
Contribution margin $100
Bread machines per hour 4
Contribution margin per machine hour $400
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