Slippers and Crystal Balls. FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls. Both products must be processed by the glass sanding machine, which has a capacity of 25,000 machine hours. Fairy Godmother Inc Production Information Per Unit Information Glass Slippers Crystal Balls Selling Price 25 15 Direct Materials 8 5 Direct Labor 8 4 Variable Overhead 2 2 Variable Selling 1 1 Machine Hours 4 .75 What is the contribution margin per unit for Crystal Balls? Group of answer choices 1.50 3 6 4
Slippers and Crystal Balls. FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls. Both products must be processed by the glass sanding machine, which has a capacity of 25,000 machine hours. Fairy Godmother Inc Production Information Per Unit Information Glass Slippers Crystal Balls Selling Price 25 15 Direct Materials 8 5 Direct Labor 8 4 Variable Overhead 2 2 Variable Selling 1 1 Machine Hours 4 .75 What is the contribution margin per unit for Crystal Balls? Group of answer choices 1.50 3 6 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Fairy Godmother Inc. (FGI) makes two products: Glass Slippers and Crystal Balls. FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls. Both products must be processed by the glass sanding machine, which has a capacity of 25,000 machine hours.
Fairy Godmother Inc Production InformationPer Unit Information | Glass Slippers | Crystal Balls |
---|---|---|
Selling Price | 25 | 15 |
Direct Materials | 8 | 5 |
Direct Labor | 8 | 4 |
Variable |
2 | 2 |
Variable Selling | 1 | 1 |
Machine Hours | 4 | .75 |
What is the contribution margin per unit for Crystal Balls?
Group of answer choices
1.50
3
6
4
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