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following information is available. Selling price per unit Variable costs per unit Standard $ 220 95 Contribution margin per unit $ 125 Machine hours
following information is available. Selling price per unit Variable costs per unit Standard $ 220 95 Contribution margin per unit $ 125 Machine hours per unit Maximum unit sales per month 1 hour 650 units Required: 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Deluxe $ 250 150 $ 100 2 hours 250 units Standard Deluxe Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard Deluxe Total
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