Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine’s capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 4,250 units of Product TLX and 4,732 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Product TLX Product MTV Selling price per unit $ 12.50 $ 7.50 Variable costs per unit 3.75 4.50 I need the answer for PRODUCT MTV units produced for the most profitable sales m
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine’s capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 4,250 units of Product TLX and 4,732 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Product TLX Product MTV Selling price per unit $ 12.50 $ 7.50 Variable costs per unit 3.75 4.50 I need the answer for PRODUCT MTV units produced for the most profitable sales m
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Exercise 23-6 Sales mix determination and analysis LO P3
Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine’s capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 4,250 units of Product TLX and 4,732 units of Product MTV. Selling prices and variable costs per unit to produce the products follow.
| $ per unit | Product TLX | Product MTV | ||||||
| Selling price per unit | $ | 12.50 | $ | 7.50 | ||||
| Variable costs per unit | 3.75 | 4.50 | ||||||
I need the answer for PRODUCT MTV units produced for the most profitable sales mix !!!!
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