Question

Lie Around Furniture manufactures two products: Couches and Beds. The following data are available:

	Couches	Beds
Sales price	$ 550$550	$ 740$740
Variable costs	$ 360$360	$ 415$415

The company can manufacture

33

couches per machine hour and

11

beds per machine hour. The company's production capacity is

1 comma 3001,300

machine hours per month.

What is the contribution margin per machine hour for beds?

A.

$ 1 comma 300$1,300

B.

$ 1 comma 155$1,155

C.

$ 975$975

D.

$ 325

Answer 1

	contribution margin per hour for beds
	sellling price				740
	less variable cost				415
	contribution margin per hr for beds				325
	answer)	option D
		325