Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 1,760 hours per year. Colt can sell up to 596 units of Hero and 868 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 150 50 Flip $ 95 55 (a) Compute the contribution margin per machine hour for each product. Hero Flip Contribution margin per unit Contribution margin per machine hour (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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started