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1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Standard Deluxe Contribution margin per machine
1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Standard Deluxe Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Standard Deluxe Total Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is 100 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most profitable sales mix Standard Deluxe Total Contribution margin per unit Total contribution margin
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