Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

and with the same machine in its factory. The following informations Edgerton Company is able to produce two products available Product C odact LEDE Cris

image text in transcribedimage text in transcribed

and with the same machine in its factory. The following informations Edgerton Company is able to produce two products available Product C odact LEDE Cris Pet is home to produce unit 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 $4.000 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 contrbution margin per machine tour that each product generates Product Product B Contribution margin per unit 4000 S 32.00 Machine houts per un 041 10 Corbibution margin per machine how s 1 00.00 32.00 Product Product B Maximum number of units to be sold 600 Hour's required to produce maximum is P 2 40 200 Total 200 2. How many units of Product and Product should the company produce if it continues to operate with only one sh? How much contribution margin does this mix produce each month? Product Product B Total Hours dedicated to the production of each product Units produced for most profitable sais mix s 0.00 Corbribution margin per unit Total contribution margine 4000s 17,600 s 52 3. the company adds another shin, how many unies of Product Gard Product should it produce? How much total contribution margin would this mix produce each month Product Product B Total Hours dedicated to the production of each product 2401 1 121 3 units produced for most prob a 00 Corbution margin per unit s 40.00 Totalcorbution marginwohns S 24000 4. Suppose that the company determines that it can increase Products maximum sales to 700 per month by spending $3,000 per month in marketing of Should the company pursue this strategy and the double shift? Product Product B Total Hoodied to the production of each product Junts produced for most profile sales mix Icarution margin per unit Total contribution margin-two shins and marketing campaign

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Operational Auditing Handbook Auditing Business And IT Processes

Authors: Andrew Chambers, Graham Rand

2nd Edition

0470744766, 978-0470744765

More Books

Students also viewed these Accounting questions

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago