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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
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 Selling price per unit Variable costs per unit Contribution margin per unit $240 105 $135 Product B $270 162 $108 Machine hours to produce 1 unit 0.4 hours 650 units 1.0 hours 250 units Maximum unit sales per month 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 $13,500 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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