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 $ 220 $ 250 Variable costs per unit 95 150 Contribution margin per unit $ 125 $ 100 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 $12,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

1. Determine contribution margin per machine 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 compann adds another shift how many units of product G and product B should the company produce? How much total contribution margin does this mix produce each month?

4. Suppose that the company determines that it can increase product G's maximum sales to 700 units per month by spending $11500 in marketing efforts. Should the company pursue this strategy and the double shift?