Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machines capacity is 1,700 hours per year. Colt can sell up to 560 units of Hero and 880 units of Flip per year. Selling prices and variable costs follow.

	Hero	Flip
Selling price per unit	$ 156	$ 98
Variable costs per unit	52	56

Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machines capacity is 1,700 hours per year. Colt can sell up to 560 units of Hero and 880 units of Flip per year. Selling prices and variable costs follow.

	Hero	Flip
Selling price per unit	$ 156	$ 98
Variable costs per unit	52	56

(a) Compute the contribution margin per machine hour for each product.
	Hero	Flip
Selling price per unit	$156	$98
Variable costs per unit	52	56
Contribution margin per unit	$104	$42
Machine hours per unit	2	1
Contribution margin per machine hour	$52	$42
(b) Determine the best sales mix of products.
	Hero	Flip	Total
Units produced and sold for most profitable sales mix
Hours required to produce most profitable sales mix
(c) Compute the total contribution margin for the best sales mix.
	Hero	Flip	Total
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin