Question
Problem 25-3A (Algo) Sales mix strategies LO P3 Edge Company produces two models of its product with the same machine. The machine has a
Problem 25-3A (Algo) Sales mix strategies LO P3 Edge Company produces two models of its product with the same machine. The machine has a capacity of 154 hours per month. The following information is available. Selling price per unit Standard $ 140 Deluxe $170 102 Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month 55 $ 85 Required: $ 68 1 hour 500 units 2 hours 200 units 1. Determine the contribution margin per machine hour for each model Product Contribution Margin Contribution margin per unit Machine hours per unit Contribution margin per machine hour Standard Deluxe $ 85 $ 68 1 2 $ 85 $ 34
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