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please help and explain Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour.
please help and explain
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1.900 hours per year. Colt can sell up to 680 units of Hero and 840 units of Flip per year. Selling prices and variable costs follow Flip Selling price per unit Variable costs per unit Hero $ 156 52 $ 98 56 Flip (a) Compute the contribution margin per machine hour for each product Hero Sales 5 Variable costs per unit Contribution margin per unit $ Machine hours per unit Contribution margin per machine hour $ 1565 (52) 1045 2 208$ 98 (56) 42 12 (b) Determine the best sales mix of products Hero Flip Total Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix (c) Compute the total contribution margin for the best sales mix Hero Flip Total Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Step by Step Solution
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