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Tyler Guitars makes acoustic and electric guitars. It is struggling to determine the profitability of each guitar and deciding on which guitar to focus
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. Selling Price & Variable Costs per Guitar Acoustic Variable Cost Selling Price Electric Variable Cost Selling Price $50 $100 $150 $200 $250 $300 Machine Hours per Guitar 4 hrs. 3 hrs. Maximum Guitar Sales per Month 250 guita... 225 guita... 200 guita... 175 guita... 150 guita... 2 hrs. 125 guita... 100 guita... 1 hrs. 75 guitars 50 guitars 25 guitars 0 hrs. O guitars Acoustic Electric Acoustic Electric *+ableau KPO 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 S 95 S 120 Machine hours per unit 20 30 Contribution margin per unit $ 65 S 60 176 Contribution margin per machine hour S 22,880 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 176 Required 1 Required 2 Required 3 Determine the month's total contribution margin from the sales mix in part 2. Total contribution margin $ 22,880
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