Buoy Company is able to produce two toy products, a Big Buoy Truck and a Little |Buoy Truck, with the same machine in its factory. NOTE that only ONE Truck can be manufactured at a time using this machine. The Company currently makes both |trucks, but management is concerned that this strategy is not providing maximum benefit. They are thinking of adding a second shift and have asked you to figure out their best course of action. The following information is available: EasyBake Data: Big Truck Little Truck Selling price per unit Variable costs per unit 135.00 80.00 21.00 37.00 Contribution margin per unit Machine hours to produce ONE unit 59,00 98.00 1 hour 2/3 hour Maximum customer demand for each Truck per month (max they can sell) 310 540 The company presently operates the machine for a single eight-hour shift for 26 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 26 days per month. This change would require $13,500 additional fixed costs per month. Required (NOTE-show all calculations for full credit) 1 Determine the contribution margin per machine hour that each product generates. (4 points) 2 How many units of the Little Truck and the Big Truck should the company produce to achieve the maximum CM if it continues to operate with only one shift? Assume all Trucks produced are sold. (4 points) 3 HoW much total contribution margin does this sales mix produce each month? (4 points) 4 If the company adds another shift, how many units of the Little Truck and the Big Truck should it produce to achieve the maximum CM? (3 points) 5 How much total contribution margin would this mix produce each month? (3 points) 6 Should the company add the new shift? Why or why not? (3 points) 7 Suppose that, based on market research, the company determines that it can increase the Big Truck's maximum sales to 390 units per month by spending |$10,000 per month in marketing efforts. Should the company pursue this strategy and the double shift? Provide support for your answer. (5 points)