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Ortiz Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G
Ortiz 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 $ 120 $ 160 Variable costs per unit 40 90 Contribution margin per unit $ 80 $ 70 Machine hours to produce 1 unit 0.8 hours 2.0 hours Maximum unit sales per month 400 units 350 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 $6,500 additional fixed costs per month How many units of Product G and Product B should the company produce if it continues to operate with only one shift? (Leave no cells blank - be certain to enter "0" wherever required.) Product G units Product B units
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