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Colt company owns a machine that can produce two specialized products. Colt Company owns a machine that can produce two specialized products. Production time for
Colt company owns a machine that can produce two specialized products.
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 five units per hour. The machine's capacity is 2,100 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 3,570 units of Product TLX and 1,935 units of Product MTV. Selling prices and variable costs per unit to produce the products follow $s per unit Selling price per unit Varlable costs per unit Product TLX $14.50 Product MTV $8.70 5.22 4.35 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round cost per unit answers to 2 decimal places) Product TLX Product MTV Contribution margin per unit Contribution margin per production hour Product TXProduct MTVTotal Mavim number of units to he snl 3570 1 935 Product TLX Product MTV Contribution margin per unit Contribution margin per production hour Product TLX Product MTV 1,935 Total Maximum number of units to be sold 3,570 Hours required to produce maximum units For Most Profitable Sales Mix Product TLX Product MTVTotal Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Step by Step Solution
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