Question

Buzz Appliances manufactures two​ products: Food Processors and Espresso Makers. The following data are​ available: Food...

Buzz Appliances manufactures two​ products: Food Processors and Espresso Makers. The following data are​ available:

Food Processors

Espresso Makers

Sales price

$145.00

$235.00

Variable costs

$70.00

$160.00

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The​ company's production capacity is​ 1,200 machine hours per month.

What is the contribution margin ratio for food​ processors?

A.

31.91​%

B.

5.17​%

C.

51.72​%

D.

37.5​%

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