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Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Edgerron Company
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. |
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B 160 Selling price per unit 132 Variable costs per unit 50 82 Contribution margin per unit 64 Machine hours to produce 1 unit 0.4 hours 1.0 hours Maximum unit sales per month 600 units 150 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $8,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)
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