Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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 110 S 140 40 Variable costs per unit Contribution margin per uni 70 56 Machine hours to prod uce 1 uni 0.4 hours 1.0 hours 500 units 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 $7.000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values. 1, Determine the contribution margin per machine hour that each product generates Product G Product B Contribution margin perunit 7000 04 1.0 Machine hours per unit 175.00 s Contribution margin per machine hour Total Product G t B Maximum number of units to be sold Hours required to produce maximum units 2. How many units of Product G and Product B should the company produce continues to operate with only one shit? How much total contribution margin does this mix produce each month? Product G Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin one shit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What is the use of bootstrap program?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago