Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 2,300 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 3,910 units of Product TLX and 4,308 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 $12.50 3.75 Product MTV $7.50 4.50 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Product TLX Product MTV Contribution margin per unit Contribution margin per production hour Product TLX Product MTV Total 3,910 Maximum number of units to be sold Hours required to produce maximum units 4,308 For Most Profitable Sales Mix Hours dedicated to the production of each product Product TLX Product MTV Total Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started