Cm Per Machine Hour 2Da01D
1. **State the problem:** We need to find the contribution margin (CM) per machine hour given that each product requires 4 machine-hours and the CM per unit is 120.
2. **Formula used:** Contribution margin per machine hour is calculated as:
$$\text{CM per machine hour} = \frac{\text{CM per unit}}{\text{Machine hours per unit}}$$
3. **Apply the values:**
$$\text{CM per machine hour} = \frac{120}{4}$$
4. **Calculate:**
$$\text{CM per machine hour} = 30$$
5. **Interpretation:** This means for every machine hour used, the contribution margin earned is 30.
6. **Check machine hours limit:** The total machine hours available is 5,000, but this does not affect the CM per machine hour calculation.
**Final answer:** The contribution margin per machine hour is **30**.