Question
home / study / business / accounting / accounting questions and answers / edgerron company is able to produce two products, g and b, with
home / study / business / accounting / accounting questions and answers / edgerron company is able to produce two products, g and b, with the same machine in its factory. ...
Your question has been answered
Let us know if you got a helpful answer. Rate this answer
Question: Edgerron Company is able to produce two products, G and B, with the same machine in its factory. ...
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 | |||||||
Selling price per unit | $ | 170 | $ | 200 | ||||
Variable costs per unit | 70 | 120 | ||||||
Contribution margin per unit | $ | 100 | $ | 80 | ||||
Machine hours to produce 1 unit | 0.4 | hours | 1.0 | hours | ||||
Maximum unit sales per month | 600 | units | 200 | 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 $10,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)
I got this answered once already but it was wrong, so I need to get more accurate answers please!
1Detemine the conbrlbution magih per mechine hour thet esch product penetes Produot C Produot E Cantribution Hours req-ired to produce mxmum units 2 How meny unls cf Product G end Product B shoud the company producetcondnues to operate wih only ore shit? Hours dedlcated to the production cfesch product Unis produces for mest profrabie seles mib Cantributon magh per uni the company ecids another shit how many units of Product 3 and Product should t produce? How much total Produot C Produot B Unis produces for mest profrabie seles mib Cantributon magh per uni 4 a.coose 'ret the company determines thet can Increase Prodct Gs meemum seles to 700 units per month spending 3000 per month in marketing efarts. Ehould recompany pursue tns ststeay ad the double sin Produat G Hours dedlcated to the production cfesch product Unis produces for mest profrabie seles mib Cantributon magh per uni Total contributon magh-two shits and marceting campaignStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started