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Edge Company produces two models of its product with the same machine. The machine has a capacity of 142 hours per month. The following information
Edge Company produces two models of its product with the same machine. The machine has a capacity of 142 hours per month. The following information is available.
Standard | Deluxe | |||
---|---|---|---|---|
Selling price per unit | $ 80 | $ 110 | ||
Variable costs per unit | 25 | 66 | ||
Contribution margin per unit | $ 55 | $ 44 | ||
Machine hours per unit | 1 | hour | 2 | hours |
Maximum unit sales per month | 600 | units | 200 | units |
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