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Edge Company produces two models of its product with the same machine. The machine has a capacity of 148 hours per month. The following information
Edge Company produces two models of its product with the same machine. The machine has a capacity of 148 hours per month. The following information is available. Standard $ 110 40 5 70 1 hour 500 units Deluxe 5 140 84 $ 56 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: 2 hours 250 units 1. Determine the contribution margin per machine hour for each model Product Contribution Margin Contribution margin per unit Standard Deluxe 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 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
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