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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 its
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 225 Acoustic Variable Cost: $95 Electric Variable Cost 120 Selling Price 300 $0 $50 $100 $150 $200 $250 $300 Machine Hours per Guitar 4 hrs. Maximum Guitar Sales per Month 250 guita... 3 h 225 guita... 3 hrs. 200 guita... 175 guita... 2 h 150 guita... Acoustic: 200 guitars 2 hrs. 125 guita... 100 guita... 65 75 guitars 1 hrs. 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. Determine the most profitable sales mix for the company. 3. Compute the month's total contribution margin for the most profitable sales mix. 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. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Contribution margin per machine hour Acoustic Electric $ 225 $ 300 95 120 $ 130 $ 180 2 3 CA 65 $ 60 1. Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars. 2. Determine the most profitable sales mix for the company. 3. Compute the month's total contribution margin for the most profitable sales mix. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the most profitable sales mix for the company. Acoustic Electric Number of units produced 0 Required 1 Required 2 Required 3 Required 3 Compute the month's total contribution margin for the most profitable sales mix. Total contribution margin
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