What is the contribution margin per machine per hour


Problem: Susuzki Appliances can manufacture two products. Juicers and Maker. The following data are available:

 

Juicers

Makers

Sales Price

Php 62.50

Php 112.50

Variable Costs

Php 25.00

Php 75.00

The company can manufacture two juicers per machine hour and three makers per machine hour. The company's production capacity is 1,200 machines per month.

Assignment Requirement:

1) What is the contribution margin per machine per hour for makers?

2) What is the construction margin ration for juicers?

3) What is the contribution margin per machine hour for juicers?

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