Santorino Company Produces Two Models of a Component, Model K-3

question 101

Multiple Choice

Santorino Company produces two models of a component, Model K-3 and Model P-4.The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14.Each model must spend time on a special machine.The firm owns two machines that together provide 4,000 hours of machine time per year.Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time.
-
What is the contribution margin per unit of scarce resource (machine time) for Model K-3?

• A) $24
• B) $12
• C) $6
• D) $14
• E) $28

---

Definitions:

File Type

A designation that identifies the format of a file and the type of data it contains.

File Property

A set of metadata about a file, such as its name, type, size, and creation or modification dates.

Quotation Marks

Symbols that come in pairs within different writing systems to highlight direct conversations, quotations, or specific phrases.

Exact Phrase

A search query term that matches results containing the specific sequence of words or characters entered, often surrounded by quotes to indicate the exact match requirement.