Question
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 2,500 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 4,250 units of Product TLX and 4,692 units of Product MTV. Selling prices and variable costs per unit to produce the products follow.
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.)
Colt Company owns a machine that can produce two specialized proc for Product MTV is four units per hour. The machine's capacity is 2,50 who has agreed to buy all of the company's output up to a maximum c Selling prices and variable costs per unit to produce the products folla $ per unit Selling price per unit Variable costs per unit Product TLX $12.50 Product MTV $7.50 4.50 3.75 Determine the company's most profitable sales mix and the contribution contribution margins to 2 decimal places.) Pro Product TLX Contribution margin per unit Determine the company's most profitable sales mix and the contribution margin that results from that sales mx Rd contribution margins to 2 decimal places ) Product TLX Product MIV Contribution margin per unit Contribution margin per production hour Product TLX Product MIV Total Maximum number of units to be sold Hours required to produce maximum units 4.250 4,692 Product MTV Total Product TLX For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 19 of 21 Next >
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