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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.
-Acoustic: SP=$225 VC=$95 Hours=2 Sales=200 units
-Electric: SP=300 VC=120 Hours=3 Sales=65 units.
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. Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars. 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. Determine the most profitable sales mix for the company. Required 3 Compute the month's total contribution margin for the most profitable sales mixStep by Step Solution
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