Calculate the unit contribution margin per production


Question: Magenta Company manufactures a certain type of metal. The metal undergoes a hardening process. The hardening unit is operating at full capacity and is a production constraint. The unit contribution margin and the number of hours of hardening treatment used by the metal are as follows: Unit selling price $90.80 Unit variable cost (23.55) Unit contribution margin $67.25 Hardening treatment hours per unit 5 hrs. Assuming Magenta produces 1,700 units of the metal, calculate the unit contribution margin per production constraint hour. Round your final answer to nearest whole dollar. a. $13 per hour b. $24 per hour c. $67 per hour d. $34 per hour

 

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Accounting Basics: Calculate the unit contribution margin per production
Reference No:- TGS03417916

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