What is the contribution margin per direct labour hour

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Question - Miley runs a pottery shop making and selling custom cups and bowls. Miley has very limited resources when it comes to having employees to create the shape of the pottery from clay. A cup requires 0.5 hours of direct labour, and a bowl requires 0.3 hours of direct labour. The unit contribution margins are $100 for the bowls and $250 for the cups. What is the contribution margin per direct labour hour for cups?

a. $425

b. $125

c. $500

d. $300

Reference no: EM133061166

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