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nments: ACCTG O02!NDU... Problem 23-5A Analysis of sales mix strategies LO A1 Edgerron Company is able to produce two products, G and B, with the

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nments: ACCTG O02!NDU... Problem 23-5A Analysis of sales mix strategies LO A1 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 Variable costs per unit 120 45 150 90 s 75 $ 60 Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 500 units 1.0 hours 250 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 $7,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 1. Determine the contribution margin per machine hour that each product generates. Product G Product EB Contribution margin per unit Machine hours per unit Contribution margin per machine hour 75.00S 90.00 1.0 90.00 187.50$ ProductG Product B Maximum number of units to be sold Total 500 250 Hours required to produce maximum units 200 250 450 2. How many units of Product G and Product B should the company produce if it continues to operate with only one shift? Product G Product B Total

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