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 capacity is 1740 hours per year. Colt can sell up to 584 units of Hero and 872 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 Contribution margin per unit Contribution margin per machine hour (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 QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $175,000 of its variable costs are avoidable, and $99,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 250,000 Variable costs 175,000 Contribution margin 75,000 Fixed costs 106,000 Income (los) (31,000) (a) Compute the income increase or decrease from eliminating this segment (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continuo Eliminate Income Increase (Decrease) Sales $ 250,000 Variable costs 175,000 Contribution margin 75,000 Fixed costs 106,000 Income (10) $ (31,000) WA Required 3 > QS 25-14 (Algo) Segment elimination LO P4 A segment of a company reports the following loss for the year. All $175,000 of its variable costs are avoidable, and $99,000 of its fixed costs are avoidable. Segment Income Loss) Sales $ 250,000 Variable costs 175,000 Contribution margin 75,000 Fixed costs 106,000 Income (loss) (31,000) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. 5 Required A Required B Should the segment be eliminated? Should the segment be eliminated?