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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. Product G

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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. Product G Product B Selling price per unit 80 110 Variable costs per unit 25 66 55 44 Contribution margin per unit 0.4 hours Machine hours to produce 1 unit 1.0 hours 200 units Maximum unit sales per month 600 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 $5,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values 1. Determine the contribution margin per machine hour that each product generates Product B Product G Contribution margin per unit 55.00 44.00 10 Machine hours per unit 0.4 Contribution margin per machine hour 137.50 44.00 Product B Total Product G 600 200 Maximum number of units to be sold Hours required to produce maximum units 240 200 440

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