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Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity

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Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 2,000 hours per year. Colt can sell up to 740 units of Hero and 820 units of Flip per year. Selling prices and variable costs follow. Hero $ 150 Variable costa per unit 50 Flip $ 95 55 Selling price per unit (a) Compute the contribution margin per machine hour for each product. Contribution margin per unit Contribution margin per machine hour Hero Flip (b) Determine the best sales mix of products. Hero Flip Tot 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 Tot Units produced for most profitable sales mix Contribution margin per unit 27 15 < Prev tv 10 of 30 Next > Mic Book Pra

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