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25. Homework 1 Saved 11 Exercise 25-6 (Algo) Sales mix LO P3 1.31 points Colt Company produces two skateboard models. Machine time per unit for
25. Homework 1 Saved 11 Exercise 25-6 (Algo) Sales mix LO P3 1.31 points Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,680 hours per year. Colt can sell up to 548 units of Hero and 884 units of Flip per year. Selling prices and variable costs follow Hero Flip Selling price per unit Variable costs per unit $ 150 50 $ 95 55 eBook 100 Hint Flip 95 (a) Compute the contribution margin per machine hour for each product. Hero Selling price per unit S Variable costs per unit Contribution margin per unit Machine hours per unit Contribution margin per machine hour $ 150 s 50 55 Print 100 $ 40 2 1 References 50 S 40 (b) Determine the best sales mix of products. Hero Flip Total 548 Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix 884 1,680 1,680 3,360 (c) Compute the total contribution margin for the best sales mix. Hero Flip Total 548 884 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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