Question

Lie Around Furniture manufactures two products: Couches and Beds. The following data are available: Beds Couches $540 $350 Sa

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Answer #1

Ans (D) $710

Explanation:

Contribution Margin= Sales - Variable Cost

=$ 730 - $375

= $355

Contribution Margin Per Machine Hour:

= CM per Hour * No of beds Manufactured in hour

= $355 * 2

= $710

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