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MUST SHOW ALL WORK SALES MIX Review the following information related to 2 products sold by the Company. Per Unit Information: Product A Product B
MUST SHOW ALL WORK
SALES MIX Review the following information related to 2 products sold by the Company. Per Unit Information: Product A Product B Sales Price $50 $100 Variable Cost $20 $60 Contribution Margin $30 $40 MHRs needed to make 1 unit 3 MHRS 1 MHR Sales demand 600 units 800 units The company has a total of 2.000 machine hours (MHRs) available. Required 4 POINTS . 1) Determine the CM per MHR for Product AS 4 POINTS 2) Determine the CM per MHR for Product B $ 15 POINTS 3) Determine how many units of each product to sell to maximize profits. What is the maximum Total Contribution Margin the company can expect based on the quantities you recommend producing? $ 7 POINTS 4) How much (if any) lost sales revenue exists based on capacity compared to demand? $ Step by Step Solution
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