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 $ 240 $ 270 Variable costs per unit 105 162 Contribution margin per unit $ 135 $ 108 Machine hours to produce 1 unit 0.4 hours 1.0 hours Maximum unit sales per month 650 units 250 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 $13,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

Total contribution margin two shifts 4. Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending $12,500 per month in marketing eorts. Should the company:r pursue this strater and the double shift? Compute total incremental income. Contribution margin per unit _ Contribution margin _ Contribution margin per unit _ Contribution margin _ \f1. Determine the contribution margin per machine hour that each product generates. Contribution margin per machine hour _ 2. How many units of Product G and Product B should the company produce it it continues to operate with only one shift? How much total contribution margin does this mix produce each month? Units produced for most protable sales mix _- Contribution margin per unit 3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total incremental income would this mix produce each month? Should the company add the new shift? Hours dedicated to the production of each product ___ Units produced for most protable sales mix _ Contribution margin per unit Total contribution margin two shifts