Check my 11 Edgerron Company is able to produce two products, G and B. with the same machine in its factory. The following information is available points Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 50 10 $ 40 Product B $ 80 48 $ 32 1.0 hours 200 units eBook 0.4 hours 600 units 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.) Product B $ 32 00 1 Determine the contribution margin per machine four that each product generates Product G Contribution margin per unit $ 4000 Machine hours per unit Contribution margin per machine hour Product G 500 Maximum number of units to be sold Hours required to produce maximum units Total Product B 200 Mc Graw Hii 1th Check my 11 Hours required to produce maximum units 2 points 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 eBook Print 3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total incremental income would this mix produce each month? Should the company add the new shift? 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-two shifts Total incremental income Mc H Prey 11 of 12 DE Next > GEW TOS Aol. 8 ab OD CLA Eb Check my w 11 2 Doints 4 Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending $3,000 per month in marketing efforts Should the company pursue this strategy and the double shift? Compute total incremental income Product G Product B Total Second shift without marketing campaign Units produced for most profitable sales mix Contribution margin per unit Contribution margin s 0$ eBook Print 0 Second shift with marketing campaign Units produced for most profitable sales mix Contebution margin per unit Contribution margin 0 $ 0 Me GE HII US AN hol. B qb CLA BE