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:

Current Liabilities

Obligations expected to require cash in less than one year, usually payables and accruals.

Temporary Working Capital

Additional working capital needed to support the fluctuating levels of business activity.

Cyclical Nature

Describes a pattern that repeats in cycles, often used in economics to describe the fluctuations in the economy over periods of expansions and recessions.

Seasonal

Pertaining to or occurring during a particular season of the year, often implying changes in business activities, market demand, or weather patterns that recur annually.