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Help Please Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available
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Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G Product B 140 Selling price per unit 110 Variable costs per unit 40 84 70 56 Contribution margin per unit 0.4 hours Machine hours to produce 1 unit 1.0 hours 250 units Maximum unit sales per month 500 units The company presently operates the machine for a single eight-hour shift for 22 working days each month Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $7,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)Step by Step Solution
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