23.5

Edgerron Company is able to produce two products, G and B, with the same machine in Its factory. The following information is avallable. The company presently operates the machine for a single elght-hour shift for 22 working days each month. Management Is thinking about operating the machine for two shifts, which will Increase its productlvity by another eight hours per day for 22 days per month. This change would require $10,500 addltional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, If any, as negatlve values.) 3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total incremental income would this mix produce each month? Should the company add the new shift? 4. Suppose the company determines that it can increase Product G's maximum sales to 600 units per month by spending $9,500 per month in marketing efforts. Should the company pursue this strategy and the double shift? Compute total