Sunday, September 11, 2011

The contribution per machine-hour is

ACCOUNTING

Multiple Choice

Helmer’s Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:



Standard Premium

Contribution margin per unit $18 $20

Number of machine-hours required 3 4



The contribution per machine-hour is

a. $18 for Standard, $20 for Premium.

b. $54 for Standard, $80 for Premium.

c. $15 for Standard, $16 for Premium.

d. $6 for Standard, $5 for Premium.


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