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 1,660 hours per year. Colt can sell up to 536 units of Hero and 888 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 156 52 Flip $ 98 56 (a) Compute the contribution margin per machine hour for each product. Hero Flip $ 98 56 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Contribution margin per machine hour $ 156 $ 52 1041 $ 21 52 $ 42 $ 42 (b) Determine the best sales mix of products. Hero Flip Total 536 Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix capacity is 1,660 hours per year. Colt can sell up to 536 units of Hero and 888 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 156 52 Flip $ 98 56 .....: Flip 156 $ $ 98 (a) Compute the contribution margin per machine hour for each product. Hero Selling price per unit $ Variable costs per unit Contribution margin per unit $ $ Machine hours per unit Contribution margin per machine hour $ 52 56 104 $ $ 42 es 2 1 52 $ $ 42 (b) Determine the best sales mix of products. Hero Flip Total 536 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 536 Units produced for most profitable sales mix Contribution margin per unit