1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Deluxe Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe Standard Total 3. Assume the maximum demand for the Standard model is 70 units (not 500 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

1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Deluxe Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe Standard Total 3. Assume the maximum demand for the Standard model is 70 units (not 500 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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