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Edge Company produces two models of its product with the same machine. The machine has a capacity of 140 hours per month. The following information
Edge Company produces two models of its product with the same machine. The machine has a capacity of 140 hours per month. The following information is available. Standard Deluxe Selling price per unit $ 70 $ 100 Variable costs per unit 20 60 Contribution nargin per unit $ 50 Machine hours per unit 1 hour 2 hours Maximum unit sales per month 600 units 208 units Required: $ 40 1. Determine the contribution margin per machine hour for each model, Product Contribution Margin Standard Contribution margin per unit Deluxe Contribution margin per machine hout 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 600 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
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