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SI cant tell if the system is giving me an error or not. Nothing is working for the MTV Units produced for most profitable sales
SI cant tell if the system is giving me an error or not. Nothing is working for the MTV Units produced for most profitable sales mix.
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is five units per hour. The machine's capacity is 2,500 hours per year. Both products are sold to a single customer a who has agreed to buy all of the company's output up to a maximum of 4,250 units of Product TLX and 5,785 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Selling price per unit Variable costs per unit Product TLX $12.50 3.75 Product MTV $7.50 4.50 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Product TLX Product MTV $ 8.75 $ 3.00 Contribution margin per unit Units produced per hour Contribution margin per production hour 3 5 $ 26.25 $ 15.00 Product TLX Total Product MTV 5,785 Maximum number of units to be sold 4,250 Hours required to produce maximum units 1,416 1,157 2,573 Total 2,500 For Most Profitable Sales Mix Product TLX Product MTV Hours dedicated to the production of each product 1,416 1,084 Produce most profitable units until the market demand has been satisfied. Units produced for most profitable sales mix 4,250 Contribution margin per unit $ 8.75 $ 3.00 Total contribution margin $ 37,188 $ 0Step by Step Solution
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