Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,820 hours per year. Colt can sell up to 632 units of Hero and 856 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 156 52 Flip $ 98 56 duot
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,820 hours per year. Colt can sell up to 632 units of Hero and 856 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 156 52 Flip $ 98 56 duot
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
Related questions
Question
do no give solution in image
![Exercise 23-6 (Algo) Sales mix LO P3
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's
capacity is 1,820 hours per year. Colt can sell up to 632 units of Hero and 856 units of Flip per year. Selling prices and variable costs
follow.
Selling price per unit
Variable costs per unit
Contribution margin per unit
Hero
$ 156
52
(a) Compute the contribution margin per machine hour for each product.
Hero
Contribution margin per machine hour
(b) Determine the best sales mix of products.
Units produced and sold for most profitable sales mix
Hours required to produce most profitable sales mix
Flip
$98
56
(c) Compute the total contribution margin for the best sales mix.
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Hero
Hero
Flip
Flip
Flip
Total
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcda0d84-242c-4c69-a0d3-5068a6f64560%2F3dd34358-3076-4733-8130-b50b2f3821bb%2Flqzbdw_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 23-6 (Algo) Sales mix LO P3
Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's
capacity is 1,820 hours per year. Colt can sell up to 632 units of Hero and 856 units of Flip per year. Selling prices and variable costs
follow.
Selling price per unit
Variable costs per unit
Contribution margin per unit
Hero
$ 156
52
(a) Compute the contribution margin per machine hour for each product.
Hero
Contribution margin per machine hour
(b) Determine the best sales mix of products.
Units produced and sold for most profitable sales mix
Hours required to produce most profitable sales mix
Flip
$98
56
(c) Compute the total contribution margin for the best sales mix.
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Hero
Hero
Flip
Flip
Flip
Total
Total
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College