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Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Filip is one hour. The machine's capacity is
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Filip is one hour. The machine's capacity is 1,840 hours per year. Colt can sell up to 644 units of Hero and 852 units of Flip per year. Selling prices and variable costs follow. Flip Hero $ 150 50 Selling price per unit Variable costs per unit $ 95 55 Answer is not complete. Flip 95 (a) Compute the contribution margin per machine hour for each product. Hero Selling price per unit $ 150$ Variable costs per unit 50 Contribution margin per unit $ 100$ Machine hours per unit 2 Contribution margin per machine hour $ 50 S >> 55 40 1 > 40 (b) Determine the best sales mix of products. Hero Flip Total 844 Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Flip Total (c) Compute the total contribution margin for the best sales mix Hero Units produced for most profitable sales mix 644 Contribution margin per unit Total contribution margin $ 40
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