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HELP PLEASE!!!! Edge Company produces two models of its product with the same machine. The machine has a capacity of 142 hours per month. The
HELP PLEASE!!!!
Edge Company produces two models of its product with the same machine. The machine has a capacity of 142 hours per month. The following information is available. Standard $ 80 Deluxe $ 110 25 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit 66 $44 $55 1 hour 2 hours Maximum unit sales per month 600 units 200 units Required: 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Standard Contribution margin per unit 56 $ Machine hours per unit 2 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? Standard Deluxe Total Hours dedicated to the production of each product 400 1,000 Units produced for most profitable sales mix + 600 142) 55 Contribution margin per unit 44 Total contribution margin $ 7,810 $ 0 3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution marain Deluxe 44 Step by Step Solution
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