question archive Edge Company produces two models of its product with the same machine
Edge Company produces two models of its product with the same machine
Subject:AccountingPrice: Bought3
Edge Company produces two models of its product with the same machine. The machine has a capacity of 176 hours per month. The following information is available. Standard $ 120 40 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Deluxe $ 160 90 $ 70 2 hours 200 units $ 80 1 hour 600 units Required: 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Standard Deluxe Contribution margin per machine hour $ 80 $ 35 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is 100 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
