Exhibit 7-6
Roseville,Inc -Refer to Exhibit 7-6

Multiple Choice

Exhibit 7-6
Roseville,Inc.produces two types of gaming systems: Starter and Advanced.The gaming products are produced in separate departments and sent to the quality testing department before being packaged and shipped.A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job.Roseville,Inc.has compiled the following data in order to optimize its use of labor hours for producing the most profitable product.
$$\begin{array} { l c c } & \begin{array} { c } \text { Quality Testing } \\\text { Labor-hours }\end{array} & \begin{array} { c } \text { Contribution } \\\text { Margin }\end{array} \\ \text { Starter } & 0.80 & \$ 200 \\\text { Advanced } & 0.50 & 150\end{array}$$
-Refer to Exhibit 7-6.What is the contribution margin per quality testing labor-hour for the Starter product?

A) $160
B) $40
C) $269
D) $250
E) None of the answer choices is correct.