Question
for Product MTV is five units per hour. The machine's capacity is 2.000 hours per year. Both products are sold to a single customer
for Product MTV is five units per hour. The machine's capacity is 2.000 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 3,400 units of Product TLX and 4,695 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Selling price per unit Variable costs per unit Product TLX Product HTV $12.50 3.75 $7.50 4.50 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Contribution margin per unit Contribution margin per production hour Maximum number of units to be sold Hours required to produce maximum units For Most Profitable Sales Mix Product TLX Product MTV Product TLX Product MTV Total 3,400 4,695 Product TLX Product MTV Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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