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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
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 $ 50 $ 80 Variable costs per unit 10 48
Contribution margin per unit $ 40 $ 32
Machine hours to produce 1 unit 0.4 hours 1 hours Maximum unit sales per month 600 units 200 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 $4,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place.)
rev: 04_17_2014_QC_48564 & 48529, 04_23_2014_QC_48608 Prev Question2of2Total2 of 2 Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next
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 | $ | 50 | $ | 80 | ||||||||
Variable costs per unit | 10 | 48 | ||||||||||
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Contribution margin per unit | $ | 40 | $ | 32 | ||||||||
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Machine hours to produce 1 unit | 0.4 | hours | 1 | hours | ||||||||
Maximum unit sales per month | 600 | units | 200 | units | ||||||||
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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 $4,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place.) |
rev: 04_17_2014_QC_48564 & 48529, 04_23_2014_QC_48608
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