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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 machines capacity is hours per year. Both products are sold to a single customer who has agreed to buy all of the companys output up to a maximum of units of Product TLX and units of Product MTV Selling prices and variable costs per unit to produce the products follow.
$ per unit Product TLX Product MTV
Selling price per unit $ $
Variable costs per unit
Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. Round per unit contribution margins to decimal places.tableProduct TLXProduct MTVContribution margin per unit,Units produced per hour,Contribution margin per production hourProduct TLXProduct MTVTotalMaximum number of units to be sold,Hours required to produce maximum unitsFor Most Profitable Sales Mix,Product TLXProduct MTVTotalHours dedicated to the production of each product,,,Units produced for most profitable sales mixContribution margin per unitTotal contribution margin,,,
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