Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Productinformation is provided below.Unit selling priceUnit costs:Small MediumDemand in unitsMachine-hours per unit$400 $600Variable manufacturingFixed manufacturingFixed selling and administrative (60) (75)Unit profit$ 40 $ 115(220) (280)(80) (130)100 1202040Large$1,200(500)(240)(120)$340100100The maximum machine-hours available are 6,000 per week.What is the contribution margin per machine-hour for a medium appliance?Select one:a. $6.13b. $1.15c. $2.34d. $4.90

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Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Demand in units Machine-hours per unit Small Medium $400 $600 a. $6.13 b. $1.15 c. $2.34 Variable manufacturing (220) (280) (500) Fixed manufacturing (80) (130) (240) Fixed selling and administrative (60) (75) (120) Unit profit $ 40 $115 Large 100 120 20 40 $1,200 $340 100 100 The maximum machine-hours available are 6,000 per week. What is the contribution margin per machine-hour for a medium appliance? Select one:

Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Demand in units Machine-hours per unit Small Medium $400 $600 a. $6.13 b. $1.15 c. $2.34 Variable manufacturing (220) (280) (500) Fixed manufacturing (80) (130) (240) Fixed selling and administrative (60) (75) (120) Unit profit $ 40 $115 Large 100 120 20 40 $1,200 $340 100 100 The maximum machine-hours available are 6,000 per week. What is the contribution margin per machine-hour for a medium appliance? Select one:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling price $400 $600 $1,200 Unit costs: Variable manufacturing (220) (280) (500) Fixed manufacturing (80) (130) (240) Fixed selling and administrative (60) (75) (120) Unit profit $ 40 $ 115 $340 Demand in units 100 120 100 Machine-hours per unit 20 40 100 The maximum machine-hours available are 6,000 per…
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