Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow....

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Accounting

Helena Company manufactures and sells two products. Relevant per unit data concerning each product follow.

Product

Basic

Deluxe

Selling price $42.00 $52.00
Variable costs $20.40 $24.80
Machine hours 0.60 0.80

(a)

Correct answer iconYour answer is correct.

Compute the contribution margin per machine hour for each product.

Basic

Deluxe

Contribution margin per machine hour

$

$

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(b)

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If 1,010 additional machine hours are available, which product should Helena manufacture? BasicDeluxe

eTextbook and Media

Attempts: 1 of 5 used

(c)

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Calculate total contribution margin if the additional 1,010 hours are: (1) Divided equally between the products.

Basic

Deluxe

Total

Contribution margin $ $ $

(2) Allocated entirely to the product identified above.

Basic

Deluxe

Total

Contribution margin $ $ $

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