Answer the Following Questions Using the Information Below:
Frank's Furniture

question 78

Multiple Choice

Answer the following questions using the information below:
Frank's Furniture Company manufactures three sizes of lounge chairs: small,medium and large.Product information is provided below.
$\begin{array}{lrrr}&\text { Small}&\text { Medium }&\text { Large }\\\text { Urit selling price } & \$ 150 & \$ 250 & \$ 500 \\\text { Unit costs: } & & & \\\quad \text { Variable manufacturing } & (60) & (120) & (200) \\\quad \text { Fixed manufacturing } & (40) & (50) & (120) \\\quad \text { Variable ælling and administrative } & \underline{30) } & \underline{30) } & \underline{30) } \\\text { Unit profit } & \underline{\$ 20} & \underline{\$ 50} & \underline{\$ 150} \\& & & \\\text { Demand in units } & 100 & 120 & 100 \\\text { Machine-hours per unit } & 20 & 40 & 100\end{array}$
The maximum machine-hours available are 6000 per week.
-What is the contribution margin per machine-hour for a large chair?

• A)$1.80
• B)$5.00
• C)$2.70
• D)$3.00

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Definitions:

Sensory

Relating to or involving the senses or sensation.

Procedural Memory

A type of long-term memory involved in the unconscious memory of skills and how to perform certain procedures.

Working Memory

A form of memory that involves holding, processing, and manipulating information in the short term.

Mental Images

Visual or other sensory representations created by the mind, which can be used in problem-solving and creative thinking.