11. Award 200 points and B. with the same machine in Edgerton Company is able to produce we products, available factory The following information is Product G Product $ 110 Selling price per unit Vanable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unt sales per month 3 55 0.4 hours 600 units 10 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require 55,500 additional fixed costs per month (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine hour that each product generales Product Contribution margin per unit $ 55.00 Machine hours per unit 1 0 4 Contribution margin per machine hour $ 137.50 Product Maximum number of units to be sold Hours required to produce mamum units 240 Product B $ 4400 10 $ 4400 Product B Total 200 2. How many units of Product G and Product should the company produce continues to operate with only one How much total contribution margin does this mix produce each month? Product Product B Hours dedicated to the production of each product Units produced for most profitable sales mex 440 Contribution margin perunt $ 55.00 $ 0.00 Total contribution margin-one shit $ 24.200 $ 24 200 3. If the company adds another shit, how many unts of Product and Product should produce? How much to incremental income would this mix produce each month? Should the company add the new shift? Product Product B Total Hours dedicated to the production of each product 240 1 12 353 Units produced for most profitable sales mex 600 112 Contribution margin per unit $ 55.00 $ 44.00 Total contribution margin-two shifts $ 33,000 $ 4,928 $ 37,928 Total contribution margin-one shift Change in contribution margin Change in fixed costs Change in operating income oss) Total incremental income Should the company add another shift? Yes 4. Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending 54.500 per month in marketing efforts. Should the company pursue this strategy and the double sh? Compute total incremental income Product Product B Total Second shift without marketing campaign Units produced for most profitable sales mex Contribution margin per unit Contribution margin S 0 $ 0 Second this with marketing campaign Units produced for most professor Contribution margin perunt Con buton margin $ 72 55.00 $ 4400 3.500 331683 416 s NO