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Chapter 10 question 11Edgerron company is able to produce two products, G and B, with the sameMachine in its factory. Selling price per unit G

Chapter 10 question 11Edgerron company is able to produce two products, G and B, with the sameMachine in its factory. Selling price per unit G $70 B $100Variable cost per unit G $20 B $60Contribution margin per unit G $50 B $40Machine hours to produce 1 unit G 0.4 B 1.0Maximum unit sales per mont G 600 unit B 200The company presently operates the machine for a single eight hour shift for 22 working days each month. Management is thinking about operator machine for two shifts, which will increase its productivity by another 8 hours per day for 22 day month. This change would require $5,000 additional fixed costs per month. I'm confused by this -in 3. It's also asking hours dedicated to production of each product Units produced for most profitable sales mix Total contribution margin two shifts

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11 1. Determine the contribution margin per machine hour that each product generates. Product G Product B Contribution margin per unit 2 points Contribution margin per machine hour Product G Product B Total Skipped Maximum number of units to be sold 600 200 Hours required to produce maximum units eBook Print 2. How many units of Product G and Product B should the company produce if it continues to operate with only one shift? How much total contribution margin does this mix produce each month? Product G Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin - one shift 3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total Mc Graw

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