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4. - U-Develop makes two kinds of picture frames, wood and metal. U-Develop can sell 150 metal frames or 150 wooden frames or any combination

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4. - U-Develop makes two kinds of picture frames, wood and metal. U-Develop can sell 150 metal frames or 150 wooden frames or any combination totaling 150 to break even. The price of the metal frame is 550 cach and the price of wooden frame is $80 each. Material cost is $8 for metal frame and 522 for wooden frame. Laboris $8 for metal frame and S24 for wooden frame. Overheard cost is 54 for both metal and wooden frame. Manufacturing cost is $1.500 and marketing and administrative costs are S4,500. The contribution margin- of each product is the same, so the Profit-Volume relationship is the same regardless of the mix of the products produced and sold. U-Dexclon s objective is to maximize the contribution from its sale of frames. Suppose that U-Develon's capacity is limited to 200 machine-hours per month. Machines may be used to produce either two metal frames or one wooden frame per machine-hour. a. Compute Contribution Margin per Unit for both frames? b. What is the break-even point (How many frames of both metal and wooden)? c. Which should U-Develop produce. Metal or Wooden to maximize profit? (Use Excel- Solver)

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