Myosot Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $12; the unit contribution margin for Model P-4 is $20. Each model must spend time on a special machine. The firm owns two machines that provide 6,000 hours of machine time per year together. Model K-3 requires 24 minutes of machine time; Model P-4 requires 36 minutes of machine time. What is the amount of machine time for model K-3 in terms of percent of a machine hour? a. 12%

b. 24%

c. 36%

d. 40%

e. 66%

Question

Jade

Business

11 August, 18:53

Myosot Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $12; the unit contribution margin for Model P-4 is $20. Each model must spend time on a special machine. The firm owns two machines that provide 6,000 hours of machine time per year together. Model K-3 requires 24 minutes of machine time; Model P-4 requires 36 minutes of machine time. What is the amount of machine time for model K-3 in terms of percent of a machine hour? a. 12%

b. 24%

c. 36%

d. 40%

e. 66%

+2

Answers (1)

Know the Answer?

Francesca Jacobson · Answer 1

D. 40%

Explanation:

The computation of the mount of machine time for model K-3 in terms of percent of a machine hour is shown below:

= (Model K-3 : Machine Hour) * 100

= (24 minutes : 60 minutes) * 100

= 40%

As the machine hours contain 60 minutes so we divide the model k-3 required time by the machine hour so that the percent of machine hour could come