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; $ 190 $ 220

Variable costs per unit; 80 132

Contribution margin per unit: $ 110 $ 88

Machine hours to produce 1 unit: 0.4 hours 1.0 hours

Maximum unit sales per month: 550 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 $11,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

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			$	190				$	220
Variable costs per unit				80					132
Contribution margin per unit			$	110				$	88
Machine hours to produce 1 unit		0.4	hours				1.0	hours
Maximum unit sales per month		550	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 $11,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

Determine the contribution margin per machine hour that each product generates Produot Produots Contribution margin perunt 110.00 $ 88.00 Machine hours per unit 1.0 Contribution margin per machine hour 5 275.00 $ 88.00 Produoto Produot B Maamum number of units to be sold 50 200 Hours required to produce mamum units 200 Total 420 12. How many units of Product G and Product should the company producert continues to operate with only one shit? How much total contribution margin does this mix produce each month? Produto Produot B Total Hours dedicated to the production of each product 176 176 Units produced for most probable sales mix Contribution margin per un 's 110.00 Total contribution margin-onest $ 48.400 5 48,400 392 2. If the company adds another shit, how many units of Product G and Product B should produce? How much total incremental income would this mix produce each month? Should the company add the new shift? Produto Produots Total Hours dedicated to the production of each product 132 Units produced for most profitable sales mix Contribution margin perunt Total contribution margin-two shit Total incomental income 14. Suppose the company determines that it can increase Products maximum sales to 500 units per month by spending $10,000 per month in marketing efforts. Should the company pursue this strategy and the double shift Compute total incremental income Produto Produot B Total Second shit without marketing campaign Units produced for most problemi Contribution margin perunt Contribution margin Ols Second shit with marating campaign Units produced for most profitable mix Contribution margin perunt Contribution margin Ols