Question
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is four units per hour. The machines capacity is 2,300 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 3,910 units of Product TLX and 1,880 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 | $ | 12.00 | $ | 7.20 | ||||
Variable costs per unit | 3.60 | 4.32 | ||||||
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.)
The two numbers already on their are incorrect I believe.
Determine the company's most profitable sales mix and the contribution margin that results from th contribution margins to 2 decimal places.) Product MTV Product TLX Contribution margin per unit Contribution margin per production hour Total Product MTV Product TLX Maximum number of units to be sold 3,910 1,880 Hours required to produce maximum units For Most Profitable Sales Mix Total Product TLX Product MTV Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution marginStep by Step Solution
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