Evample $1$:

Lindenwood Company produces two models of its surfboards with the same machine, standard

and extra$-$long. The machine used to make the surfboards has a capacity of $300$ 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.