Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Variable Costs: Acoustic-$95 Electric-$120 Selling Price: Acoustic-$225 Electric-$300 Macine Hours per Guitar: Acoustic- 2 Machine hours Electric- 3 Machine hours Maximum Guitar Sales per Month:
Variable Costs: Acoustic-$95 Electric-$120
Selling Price: Acoustic-$225 Electric-$300
Macine Hours per Guitar: Acoustic- 2 Machine hours Electric- 3 Machine hours
Maximum Guitar Sales per Month: Acoustic- 200 Guitars Electric- 65 Guitars
How to calculate the most profitable sales mox for the company??
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. 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. Complete this question by entering your answers in the tabs below. Determine the most profitable sales mix for the companyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started