Tableau DA 10-3: Mini-Case, Analyzing sales mix strategies LO P3

Tyler Guitars makes acoustic and electric guitars. It is struggling to determine the profitability of each guitar and deciding on which guitar to focus its sales efforts. Tyler currently has a capacity of 352 machine hours per month. The Tableau Dashboard shows data from the recent month.

1. Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars. 2. Assume the maximum demand for acoustic guitars is 131 units (not 200 units). How many units of each type of guitar should the company produce? 3. Determine the months total contribution margin from the sales mix in part 2.

Selling and Variable Cost per Guitar Acoustic - Variable - $95 Selling price- $225 Electric - Variable $120 Selling price -$300 Machine hours per guitar electric 3 hours, acoustic 2 hours

Max guitar sales per month Acoustic - 200, electric $65

Selling Price & Variable Costs per Guitar Acoustic Variable Cost Selling Price Electric Variable Cost Selling Price $0 $50 $100 $150 $200 $250 $300 Machine Hours per Guitar Maximum Guitar Sales per Month 4 hrs. 250 guitars 225 guitars 3 hrs. 200 guitars 175 guitars 150 guitars 2 hrs. 125 guitars 100 guitars 1 hrs. 75 guitars 50 guitars 25 guitars O hrs. O guitars Acoustic Electric Acoustic Electric 1. Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars. 2. Assume the maximum demand for acoustic guitars is 131 units (not 200 units). How many units of each type of guitar should the company produce? 3. Determine the month's total contribution margin from the sales mix in part 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars. Acoustic Electric Selling price per unit Contribution margin per unit Contribution margin per machine hour Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the maximum demand for acoustic guitars is 131 units (not 200 units). How many units of each type of guitar should the company produce? Acoustic Electric Number of units produced Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the month's total contribution margin from the sales mix in part 2. Total contribution margin