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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 | $ | 120 | $ | 160 | |||||||||
Variable costs per unit | 40 | 90 | |||||||||||
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Contribution margin per unit | $ | 80 | $ | 70 | |||||||||
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Machine hours to produce 1 unit | 0.4 | hours | 1.0 | hours | |||||||||
Maximum unit sales per month | 600 | units | 200 | units | |||||||||
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