Exercise 10-6 (Algo) Sales mix LO P3 Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,800 hours per year. Colt can sell up to 620 units of Hero and 860 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Hero $ 150 Variable costs per unit 50 Flip $ 95 55 (a) Compute the contribution margin per machine hour for each product. Contribution margin per unit Contribution margin per machine hour Flip Hero (b) Determine the best sales mix of products. Hero Flip Total Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix (c) Compute the total contribution margin for the best sales mix. Hero Flip Total Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Prev 1 of 1 Next