Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work Colt Company owns a machine that can produce two specialized products Production time for Product TLX is three units per hour and

image text in transcribed

image text in transcribed

Check my work Colt Company owns a machine that can produce two specialized products Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine's capacity is 2.200 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 3,740 units of Product TLX and 4,162 units of Product MTV. Selling prices and variable costs per unit to produce the products follow $ per unit Selling price per unit Variable costs per unit Product TLX $11.50 3.45 Product MTV $6.90 4.14 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per Lait contribution margins to 2 decimal places.) ces Contribution margin per unit Units produced per hour Contribution margin per production hour Product TLX Product MTV 8.057 $ 2.76 31 24.15 S 11.04 Product TLX Product MTV 2.76 8.05 Contribution margin per unit Units produced per hour Contribution margin per production hour 24.15 $ 11.04 Maximum number of units to be sold Hours required to produce maximum units Product TLX Product Total MTV 3.740 4,162 1,2473,812 05.059 Total For Most Profitable Sales Mix Product TLX Product MTV Hours dedicated to the production of each product Produce most profitable units until the market demand has been satisfied. Units produced for most profitable sales mix 3,740 3,812 Contribution margin per unit 30,107.003s 10,521.12

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

Proli Footwear Inc An Audit And Fraud Simulation For Team-Based Student Learning

Authors: Patricia Poli, Richard Proctor

2nd Edition

0615455492, 978-0615455495

More Books

Students also viewed these Accounting questions

Question

1. List the basic factors determining pay rates.pg 87

Answered: 1 week ago