Use the Information Below to Answer the Following Question(s)

question 259

Multiple Choice

Use the information below to answer the following question(s) :
Kitchen Appliances Company manufactures two products: toaster ovens and bread machines. The following data are available:

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 per machine hour for bread machines at the Kitchen Appliances Company?

• A) $700
• B) $100
• C) $150
• D) $50

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Definitions:

Accrued Expense

Costs that have been incurred for goods or services but have not yet been paid for or recorded in the financial statements.

Accrued Revenues

Revenues that have been earned (through the delivery of goods or services) but not yet received in cash or recorded.

Goods

Physical items that are produced or purchased for sale by a business.