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Please help me solve the part 1, 2,3, and 4 questions, thanks! value 20.00 points Problem 10-5A Analysis of sales mix strategies LOA1 Edgerron Company
Please help me solve the part 1, 2,3, and 4 questions, thanks!
value 20.00 points Problem 10-5A Analysis of sales mix strategies LOA1 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 160 190 Variable costs per unit 65 114 Contribution margin per unit 95 76 Machine hours to produce 1 unit 0.4 hours 1.0 hours 550 units Maximum unit sales per month 200 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 $9,500 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 B Contribution margin per unit 95.00 76.00 04d 1.0 Machine hours per unit Contribution margin per machine hour 76.00 Product G Product B 550 200 Maximum number of units to be sold Hours required to produce maximum units 220 200 Total 420
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