Exercise 25-6 (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 1,980 hours per year. Colt can sell up to 728 units of Hero and 824 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Hero $ 156 Variable costs per unit 52 Flip $ 98 56 (a) Compute the contribution margin per machine hour for each product Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Contribution margin per machine hour (b) Determine the best sales mix of products. Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Hero Flip $ 156 $ 98 52 56 $ 104 $ 42 2 1 $ 52 $ 42 Hero Flip Total 728 824 (c) Compute the total contribution margin for the best sales mix Hero Flip Total Units produced for most profitable sales mix 728 824 Contribution margin per unit Total contribution margin