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Evample 1 : Lindenwood Company produces two models of its surfboards with the same machine, standard and extra - long. The machine used to make
Evample :
Lindenwood Company produces two models of its surfboards with the same machine, standard
and extralong. The machine used to make the surfboards has a capacity of machine hours
per month. The following financial information for the company is listed below:
Determine the contribution margin per machine hour for each model of surfboard.
How many units of each model should the company produce to maximize profit? How much
total contribution margin total dollar amount will this sales mix produce each month?
Construct an incremental analysis of the most profitable sales mix. Explain using an Excel
worksheet.
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