Question

Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow.

		Product
		Basic		Deluxe
Selling price		$42.00		$52.00
Variable costs		$20.40		$24.80
Machine hours		0.60		0.80

(a)

Correct answer iconYour answer is correct.

Compute the contribution margin per machine hour for each product.

		Basic		Deluxe
Contribution margin per machine hour		$		$

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(b)

Correct answer iconYour answer is correct.

If 1,010 additional machine hours are available, which product should Helena manufacture?                                                                       BasicDeluxe

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(c)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate total contribution margin if the additional 1,010 hours are:

(1) Divided equally between the products.

		Basic		Deluxe		Total
Contribution margin		$		$		$

(2) Allocated entirely to the product identified above.

		Basic		Deluxe		Total
Contribution margin		$		$		$

Answer 1