Asked by Regina Orzechowski on Jun 12, 2024
Verified
Contribution margin per machine hour can be calculated by dividing:
A) machine hours required per unit by sales margin per unit.
B) contribution margin per unit by machine hours required per unit.
C) machine hours required per unit by contribution margin per unit.
D) total machine hours required by total contribution margin.
Contribution Margin
A measure of profitability calculated as sales revenue minus variable costs; used to evaluate a product's contribution to covering fixed costs.
Machine Hour
A measure of production time or operation, calculated as the total hours a machine is run in the production process.
- Evaluate expense and revenue records to determine strategies for enhancing profitability by altering product configurations or sales methodologies.
Verified Answer
LT
La'Dale ThomasJun 14, 2024
Final Answer :
B
Explanation :
Contribution margin per machine hour can be calculated by dividing contribution margin per unit by machine hours required per unit. This calculation helps in determining the profitability of utilizing the machine for producing a particular product.
Learning Objectives
- Evaluate expense and revenue records to determine strategies for enhancing profitability by altering product configurations or sales methodologies.