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Problem 10-5A Analyzing sales mix strategies LO P3 Edgerron Company is able to produce two products, G and B, with the same machine in its
Problem 10-5A Analyzing sales mix strategies LO P3 Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 90 30 $ 60 0.4 hours 600 unita Product B $ 120 72 $ 48 1.0 hours 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 $6,000 additional fixed costs per month (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) Product 1. Determine the contribution margh per machine hour wach product generales Product Contribution margin perunt Contribution margin per machine hour Total Producto 600 Product 200 Maximum number of units to be Houns required to produce maximum ut 2. How many units of Product and Product should the company produce it continues to operate with only one shit? How much total contribution margin does this mix produce each mont? Producto Product Tot Hours dedicated to the production of each product Units produced for most profitable sales mex Contribution margin per unit Total contribution margin-ones the company adds another, how many units of Product G and Product should produce? How much total incremental income would produce each month? Should the company and the news? Producto Product Total Hour dedicated to the production of each product Units produced for most profitable si Contribution margin perunt Total contribution marginwoh Total incremental income Sucos e compor determinato increase Products maximum 10 700 units per mon by sending 55.000 per month in malting efforts. Should the company pursuergy and the double compte incremental income Product Products Second with mang campaigns Un produced for most probleem Contribution margin perut Contribution in Un produced for most profitable Control or per Contam
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