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Home bakery company manufactures two products-toaster ovens

Question - Home Bakery Company manufactures two products-toaster ovens and bread machines. The following data are available:

	Toaster Ovens	Bread Machines
Sales price	$100	$160
Variable costs	$20	$70

Home Bakery Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Home Bakery's production capacity is 1,600 machine hours per month. What is the contribution margin per machine hour for toaster ovens?

$480

$25

$10

$360

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Accounting Basics: Home bakery company manufactures two products-toaster ovens

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Accounting Basics: Home bakery company manufactures two products-toaster ovens

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