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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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? Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe Standard Deluxe 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
Transcribed Image Text: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? Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe Standard Deluxe 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
Edge Company produces two models of its product with the same machine. The machine has a capacity of 146 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Standard $ 100 35 $ 65 1 hour 500 units Deluxe $ 130 78 $ 52 2 hours 250 units
Transcribed Image Text:Edge Company produces two models of its product with the same machine. The machine has a capacity of 146 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Standard $ 100 35 $ 65 1 hour 500 units Deluxe $ 130 78 $ 52 2 hours 250 units
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