s and bread machines. The 8. Healthier Living Company manufactures two products. toaster oven following data are available: Bread Machines Toaster Ovens Sale price..$8.$150 Variable cost$40 .$s 70 Each toaster oven can be produced in 2.5 machine hours and each bread machine can be produced in 4 machine hours. Healthier Living's production capacity is 1,800 machine hours per month. What is the contribution margin per machine hour for bread machines? A. $40 B. $240 C. S 20 D. $320 E. $ 80 9. A chemical company spent $530,000 to produce 150,000 gallons of a chemical which can be sold for $5.20 per gallon. The chemical can be further processed into a weed killer which can be sold for $7.20 per gallon; it will cost $270,000 to process the chemical into a weed killer. Which o f the following is true? A. To maximize operating income, the company should continue to sell the chemical as is B. If the company decides to process further, it will increase operating income by $280,000 C. If the company decides to process further, it will increase operating income by $30,000. D. If the company decides to process further, it will decrease operating income by $150,000. E. If the company decides to process further, it will decrease operating income by $130,000. 10. When a company is considering the option of processing its product further, to achieve higher sales revenues, they must ignore the: A. additional costs necessary to process further B. incremental revenue that can be earned if processed further C. increase in fixed costs. D. fact that will additional processing produce any environmental toxins E. cost that is required to produce the basic product, before processing further (joint costs). 11. The process of analyzing alternative investments and deciding which assets to acquire or sell is known as: A. Planning and control. B. Capital budgeting. C. Variance analysis D. Master budgeting. E. Managerial accounting