5 Anne Sugar makes large ceramic pots foruse in outdoor landscaping. She currentlyhas two models, one square and the otherround. Because of the size of Anne'screations, only one pot can be fired in thekiln at a time. Information about eachmodel follows:Square RoundSales price $116Variable$142$72$56costFiring time2.5 hours3.5 hoursAssume that Anne can sell as many pots asshe can create but that she is limited as tothe number of hours that the kiln can berun.Compute the contribution margin per unitand contribution margin per hour of firingtime.

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Square Round $116 Sales price $142 Variable $56 $72 cost Firing time 2.5 hours 3.5hours Assume that Anne can sell as many pots as she can create but that she is limited as to the number of hours that the kiln can be run. Compute the contribution margin per unit and contribution margin per hour of firing time.

Square Round $116 Sales price $142 Variable $56 $72 cost Firing time 2.5 hours 3.5hours Assume that Anne can sell as many pots as she can create but that she is limited as to the number of hours that the kiln can be run. Compute the contribution margin per unit and contribution margin per hour of firing time.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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