Custom Furniture manufactures a small table and a large table
The small table sells for $900, has variable costs of $560 per table, and takes 10 direct labor hours to manufacture. The large table sells for $1,500, has variable costs of $1,000, and takes eight direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the small table.
A) $340 per direct labor hour
B) $50 per direct labor hour
C) $34 per direct labor hour
D) $56 per direct labor hour
C .C)
Sales price $900
Less: Variable cost 560
Contribution margin $340
Labor hour required for one table 10
Contribution margin per direct labor hour $34
Business