Answer the Following Questions Using the Information Below:
Aurum Appliances

question 8

Multiple Choice

Answer the following questions using the information below:
Aurum Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
$\begin{array}{lcrrr}&\text { Small }&\text { Medium }&\text { Large }\\\text { Unit selling price }&\$400&\$600&\$1,200\\\text { Unit costs: }\\\text { Variable manufacturing } & (220) & (280) & (500) \\\text { F1×ed manufacturing } & (80) & (130) & (240) \\\text { Fixed selling and administrative } & (60) & (75) & (120) \\\text { Unit profit } & \$ 40 & \$ 115 & \$ 340\\\\\text { Demand in units } & 100 & 120 & 100 \\\text { Machine-hours per unit } & 20 & 40 & 100\end{array}$ The maximum machine-hours available are 6,000 per week.
-What is the contribution margin per machine-hour for a medium appliance?

• A) $1.15
• B) $2.34
• C) $6.13
• D) $4.90

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Definitions:

High Emotionality

A characteristic of individuals who experience emotions intensely and are highly responsive to emotional situations.

Performance Advantages

The superior outcomes or benefits that an individual, team, or organization achieves relative to competitors due to effective strategies, skills, or processes.

Division Of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Riskier Decision

A choice made under conditions of uncertainty with the potential for significant loss or gain, often involving a trade-off between potential outcomes.