Question

Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. Calculate the contribution margin per direct labor hour for the large table.

A) $30 per direct labor hour

B) $32 per direct labor hour

C) $35 per direct labor hour

D) $36 per direct labor hour

Answer

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