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13) Kitchen Convenience Company manufactures two products-toaster ovens and bread machines The following data are available: Sales price Variable costs Toaster Ovens Bread Machines $100 $150 S O $70 Kitchen Convenience can manufacture six toaster ovens per machine hour and four bread machines per machine hour Kitchen Convenience's production capacity is 1600 machine hours per month What is the contribution margin per machine hour for bread machines? A) $60 B) $80 C) $480 D) 320 14) in making product mix decisions under constraining factors, which of the following is the key to choosing the product type to be maximized? A) contribution margin per unit of the constraint B) gross profit per unit using traditional costing revenue per unit D) contribution margin per unit of product 15) Boylan Company manufactures two products-toaster ovens and bread machines The following data are available Sales price Variable costs Toaster Ovens $60 550 Bread Machines $170 $60 Boylan can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Boylan's production capacity is 1600 machine hours per month. Marketing limitations indicate that Boylan can sell a maximum of 6000 toasters and 4100 bread machines per month. Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar) A) %600 toaster ovens B) 6400 bread machines C) 6000 toaster ovens and 2400 bread machines D) 3450 toaster ovens and 4100 bread machines 16) A company sells two products with information as follows: Sales price per unit Variable cost per unit AB $1200 $26.00 $10.00 $12.00 The products are machine made. Four units of product A can be made with one machine hour and two units of product can be made with one machine hour. The company has a maximum of 6000 machine hours available per month. The company can sell up to 18,000 units of product A per month, and up to 3000 units of product B for the month. What is the optimum product mix to maximize the company's operating income? A) 36,000 units of A and zero units of B B) 1500 units of A and 78.000 units of B C) zero units of A and 3000 units of B D) 18,000 units of A and 3000 units of B 1) - refers to the benefit given up by choosing an alterative course of action A) Opportunity cost B) Relevant cost Sunk cost D) Irrelevant cost

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