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just need answers for part 2&3 Edge Company produces two models of its product with the same machine. The machine has a capacity of 152
just need answers for part 2&3
Edge Company produces two models of its product with the same machine. The machine has a capacity of 152 hours per month The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Standard $ 132 50 $ 82 1 hour 600 units Deluxe $ 160 96 $ 64 2 hours 150 units Required: Standard Deluxe 1. Determine the contribution margin per machine hour for each model Product Contribution Margin Contribution margin per unit $ Machine hours per unit Contribution margin per machine hour $ 64 82 s 1 2 82 $ 32 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Se Deluxe Total 0 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 152 152 Units produced for most profitable sales mix 152 Contribution margin per unit 82 64 Total contribution margin $ 12,464 $ 0 $ 58,800 0 3 3. Assume the maximum demand for the Standard model is 80 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 2 Units produced for most profitable sales mix 80 150 Contribution margin per unit 82.00 $ 64.00 Total contribution margin $ 6,560 $ 9,600 16,160 $ $ Step by Step Solution
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