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Other Fields Homework Help Accounting Topic started by: Deprecated on Sep 21, 2016



Title: Pena Corporation manufactures two styles of lamps - a Bedford Lamp and a Lowell Lamp. The following ...
Post by: Deprecated on Sep 21, 2016
Pena Corporation manufactures two styles of lamps - a Bedford Lamp and a Lowell Lamp. The following per unit data are available:

   Bedford Lamp   Lowell Lamp
Sales price   $27   $35
Variable costs   $16   $22
Machine hours required for one lamp   2   6

Total fixed costs are $32,000, and Pena can sell a maximum of 10,000 units of each style of lamp annually. Machine hour capacity is 30,000 hours per year.  What is the contribution margin per machine hour for the Lowell Lamp? (Round your answer to the nearest cent.)
A) $2.17 per machine hour
B) $13.50 per machine hour
C) $17.50 per machine hour
D) $5.50 per machine hour


Title: Re: Pena Corporation manufactures two styles of lamps - a Bedford Lamp and a Lowell Lamp. The ...
Post by: Tanks on Sep 21, 2016
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Title: Re: Pena Corporation manufactures two styles of lamps - a Bedford Lamp and a Lowell Lamp. The following ...
Post by: Deprecated on Oct 12, 2016
Makes perfect sense, thx