Exercise 23-6 (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 1,720 hours per year. Colt can sell up to 572 units of Hero and 876 units of Flip per year. Selling prices and variable costs follow. Hero Flip Selling price per unit $ 150 $ 95 Variable costs per unit 50 55 (a) Compute the contribution margin per machine hour for each product. Hero Flip Selling price per unit $ 150 $ 95 Variable costs per unit 50 55 Contribution margin per unit $ 100 $ 40 Machine hours per unit 2 Contribution margin per machine hour $ 50 $ 40 + (b) Determine the best sales mix of products. Hero Flip Total Units produced and sold for most profitable sales mix 572 876 Hours required to produce most profitable sales mix 2 3 (c) Compute the total contribution margin for the best sales mix. Hero Flip Total Units produced for most profitable sales mix 572 876 Contribution margin per unit 100 $ 40 Total contribution margin $ 57,200 $ 35,040 $ 92,240