Insiteful Instruments produces two models of binoculars. The information for each model is as follows: Model 100 Model 101 unit

Question:

Insiteful Instruments produces two models of binoculars. The information for each model is as follows:Model 100Model 101unit selling price$200$$215Cost and expenses per unit:Direct materials$51$38direct labor3330Manufacturing overhead (1/3 fixed and 2/3 variable, applied at the rate of $18 per machine-hour)3672variable selling expenses3015Total cost and expenses per unit150155profit per unit$50$60Machine hours required to produce one unit24Total manufacturing overhead is $180,000 per month, one third of which is fixed. The demand for both products is sufficient to keep the plant running at full capacity (10,000 machine-hours per month). Suppose only one product will be produced in the future.a.Prepare a chart showing the contribution margin per machine-hour for each product.

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e Solution a Calculate Contribution margin per machine hour Sale Price LESS

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