Home Bakery Company manufactures two products—toaster ovens and bread machines
The following data are available:
Toaster Ovens Bread Machines
Sales price $80 $140
Variable costs $60 $60
Home Bakery Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Home Bakery's production capacity is 2,000 machine hours per month. What is the contribution margin per machine hour for toaster ovens? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)
A) $120
B) $20
C) $14
D) $320
A .A)
Sales price $80
Variable costs 60
Contribution margin $20
Toaster ovens per hour 6
Contribution margin per machine hour $120
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