Brittany Furniture manufactures two products: futons and recliners. The following data are available: The company can manufacture two futons per machine hour and one recliner per machine hour. The company’s production capacity is 900 machine hours per month. What is the contribution margin per machine hour for recliners? $720 $600 $360 $1,080
The correct answer is $ 360
Note 1.
| Sale Price | 480 |
| Less : variable Cost | 120 |
| Contribution Margin | 360 |
| Machine Hour Required per unit | 1 |
| Contribution Margin Per Machine Hour | 360 |
Note 2:
Contribution Margin Per Machine Hour= Contribution Margin / Machine Hour Required Per Unit
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