Edge Company produces two models of its product with the same machine. The machine has a capacity of $174$ hours per month. The following information is available.

Standard Deluxe

Selling price per unit $ $240$ $ $270$

Variable costs per unit $105162$

Contribution margin per unit $ $135$ $ $108$

Machine hours per unit $1$ hour $2$ hours

Maximum unit sales per month $650$ units $250$ units

Required:$1.$ Determine the contribution margin per machine hour for each model.

Product Contribution Margin Standard Deluxe

Contribution margin per unit $$135$ $$108$

Contribution margin per machine hour $$135$ $$54$

$2.$ 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 $1740174$

Units produced for most profitable sales mix $1740$

Contribution margin per unit $135108$

Total contribution margin $$23,490$ $$0$

$3.$ Assume the maximum demand for the Standard model is $90$ units $($not $650$ 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 $9084174$

Units produced for most profitable sales mix $9042$

Contribution margin per unit $$135\mathrm{.}00$ $$108\mathrm{.}00$

Total contribution margin $$12,150$ $$4,536$