Sung Company is able to produce two products, R and T, with the same machine in its factory. The follow- ing information is available. Problem 23-5B Analyzing sales mix strategies P3 Product R Product T $60 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit. Maximum unit sales per month 20 $40 0.4 hour 550 units $80 45 $35 1.0 hours 175 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 $3,250 additional fixed costs per month Required 1. Determine the contribution margin per machine hour that each product generates. 2. How many units of Product R and Product T should the company produce if it continues to operate Check Units of Product R: with only one shift? How much total contribution margin does this mix produce each month? (2) 440 3. If the company adds another shift, how many units of Product R and Product T should it produce? (3) 550 How much total incremental income would this mix produce each month? Should the company add the new shift? 4. Suppose the company determines that it can increase Product R's maximum sales to 675 units per month by spending $4,500 per month in marketing efforts. Should the company pursue this strategy and the double shift? Compute incremental income