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everything is correct so far, please show steps thanks Colt Company produces two skateboard models. Machine time per unit for Hero is 2 hours and
everything is correct so far, please show steps thanks
Colt Company produces two skateboard models. Machine time per unit for Hero is 2 hours and for Flip is 1 hour. The machine's capacity is 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling prices and variable costs follow. \begin{tabular}{|lrrr|} \hline & & Hero & \multicolumn{1}{|c|}{ Flip } \\ \hline Selling price per unit & $150 & $95 \\ Variable costs per unit & & 50 & 55 \\ Contribution margin per unit & $100 & $40 \\ Machine hours per unit & & 2 & 1 \\ Contribution margin per machine hour & $50 & $40 \\ \hline \end{tabular} (b) Determine the best sales mix of products. \begin{tabular}{|l|l|l|l|l|l|l|l|} \hline Units produced and sold for most profitable sales mix \\ Hours required to produce most profitable sales mix \end{tabular} (c) Compute the total contribution margin for the best sales mix Step by Step Solution
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