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Colt ComExercise 2 5 - 6 ( Algo ) Sales mix LO P 3 Colt Company produces two skateboard models. Machine time per unit for

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Colt ComExercise 25-6(Algo) Sales mix LO P3
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The
machine's capacity is 1,960 hours per year. Colt can sell up to 716 units of Hero and 828 units of Flip per year. Selling prices and
variable costs follow.
(a) Compute the contribution margin per machine hour for each product.pany produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machines capacity is 1,960 hours per year. Colt can sell up to 716 units of Hero and 828 units of Flip per year. Selling prices and variable costs follow.
Hero Flip
Selling price per unit $ 150 $ 95
Variable costs per unit 5055
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