Custom Furniture Manufactures a Small Table and a Large Table

question 25

Multiple Choice

Custom Furniture manufactures a small table and a large table.The small table sells for $900,has variable costs of $580 per table and takes 10 direct labour hours to manufacture.The large table sells for $1500,has variable costs of $980 and takes eight direct labour hours to manufacture.Calculate the contribution margin per direct labour hour for the small table.

• A) $58 per direct labour hour
• B) $32 per direct labour hour
• C) $320 per direct labour hour
• D) $52 per direct labour hour

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Definitions:

Action Directions

Strategic moves or steps taken towards the achievement of goals or objectives.

Strategic Plans

Long-range action plans designed to help an organization achieve its goals and objectives through a coordinated set of actions.

Operational Plans

Detailed, short-term plans that outline how a business will functionally achieve its objectives and strategic goals.

Recruitment

The process of finding, attracting, and selecting candidates for employment to fill job vacancies within an organization.