Edge Company produces two models of its product with the same machine. The machine has a capacity of 146 hours per month. The following information is available.

	Standard		Deluxe
Selling price per unit	$ 100		$ 130
Variable costs per unit	35		78
Contribution margin per unit	$ 65		$ 52
Machine hours per unit	1	hour	2	hours
Maximum unit sales per month	500	units	250	units

REQUIRED:

1. Determine the contribution margin per machine hour for each model.
Product Contribution Margin	Standard	Deluxe
Contribution margin per unit
Contribution margin per machine hour
2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month?
	Standard	Deluxe	Total
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
3. Assume the maximum demand for the Standard model is 70 units (not 500 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month?
	Standard	Deluxe	Total
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin