Question 18(1 point) Beacon Corporation manufactures two styles of lamps- Bedford Lamp and...

80.2K

Verified Solution

Question

Accounting

Question 18(1 point)
Beacon Corporation manufactures two styles of lamps- Bedford Lamp and Lowell Lamp. The following per unit data are available:
Bedford Lamp Lowell Lamp
*Sales price
$28
$37
*Variable costs $16$22
*Machine hours
required for one lamp
2
6
Total fixed costs are $30,000, and Beacon can sell a maximum of 12,000 units of each style of lamp annually. Machine hour capacity is 20,000 hours per year. What is the contribution margin per machine hour for the Bedford Lamp? (Round your answer to the nearest cent.)
$6.00 per machine hour
$2.50 per machine hour
$14.00 per machine hour
$18.50 per machine hour
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students