Homework Clinic
Social Science Clinic => Accounting => Topic started by: wenmo on Jan 4, 2020
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Kitchen Appliances Company manufactures two products: toaster ovens and bread machines. The following data are available:
| | Toaster Ovens | Bread Machines |
| Sales price | $100 | $200 |
| Variable costs | $30 | $150 |
The company can manufacture three toaster ovens per machine hour and two bread machines per machine hour. The company's production capacity is 1,200 machine hours per month.
What is the contribution margin ratio for toaster ovens at the Kitchen Appliances Company?
◦ 25.00%
◦ 130.00%
◦ 233.33%
◦ 70.00%
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70.00%
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ty