Question
1. Determine the contribution margin per machine hour that each product generates.2. How much units of Product G and Product B should the company produce
1. Determine the contribution margin per machine hour that each product generates.2. How much units of Product G and Product B should the company produce if it continues to operate with only one shift? How much total contribution margin does this mix produce each month?3. If the Company add another shift, how many units of Product G and Product B should it produce? How much total contribution margin would this mix produce each month?4. Suppose that the company determine that it can increase Product G's maximum sales to 700 units per month by spending $4500 per month in marketing efforts. Should the company purse this strategy and double shift?
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