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 120 160

Variable costs per unit 40 90

Contribution margin per unit 80 70

Machine hours to produce 1 unit 0.4 hour 1.0 hour

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 changes would require $15000 additional fixed costs per month.

Required

1. Determine the contribution margin per hour that each product generates.

2. How many units of Product G and Product B should the company produce if it continues to operate with only one shift. How much total contribution margin does this mix produce each month.

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?

4. Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending $12000 per month in marketing efforts. Should the company pursue this strategy and the double shift? Compute total incremental income.

Can I know how to do the excel spreadsheet of this.