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9 36. Problem 10-3A (Algo) Sales mix strategies LO P3 Edge Company produces two models of its product with the same machine. The machine
9 36. Problem 10-3A (Algo) Sales mix strategies LO P3 Edge Company produces two models of its product with the same machine. The machine has a capacity of 148 hours per month. The following information is available eflook Selling price per unit Standard $110 Deluxe $140 Variable costs per unit 40 Pet Contribution margin per unit 5.78 $56 References Machine hours per unit 1 hour 2 hours Maximum unit sales per month 500 units 250 uni Required: 1. Determine the contribution margin per machine hour for each model Product Contribution Margin Contribution margin per unit Standard Deluxe Contribution margin per machine hour 2 How many units of each model should the company produce? How much total contribution margin does this mox produce per month? Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin perund Standard Deluxe Total Maximum unit sales per month Required: 500 units) 250 units 1. Determine the contribution margin per machine hour for each model Product Contribution Margin Contribution margin per unit Standard Deluxe Contribution margin per machine hour 2. How many units of each model should the company produce? How much total coptribution margin does this mix produce per month? Hours dedicated to the production of each product Standard Deluxe Total Units produced for most profitable salos mix Contribution margin per und Total contribution margin 3. Assume the maximum demand for the Standard model is 70 units (not 500 units) How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard Deluxe Total
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