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The Mixed-Up Floor Company Ltd Makes Two Products, Carpet Polish

Question 72

Multiple Choice

The Mixed-Up Floor Company Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is: The Mixed-Up Floor Company Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is: Fixed costs of $20 000 per year are presently allocated evenly between both products. If the product mix were to change, total fixed costs would remain the same. Calculate the contribution margin per machine hour for floor deodoriser. A) $4.00 B) $2.00 C) $3.00 D) $0.25
Fixed costs of $20 000 per year are presently allocated evenly between both products. If the product mix were to change, total fixed costs would remain the same. Calculate the contribution margin per machine hour for floor deodoriser.


A) $4.00
B) $2.00
C) $3.00
D) $0.25

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