Reference no: EM132500676

Kitchen Convenience Company manufactures two products-toaster ovens and bread machines. The following data are available:

                               Toaster Ovens                  Bread Machines

Sales price                        $100                                $150

Variable costs                          $40                             $70

Question 1: Kitchen Convenience can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Kitchen Convenience's production capacity is 1600 machine hours per month. What is the contribution margin per machine hour for bread machines?

Option A $60

Option B $80

Option C $320

Option D $480