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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 1,980 hours per year. Colt can sell up to 728 units of Hero and 824 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Selling price per unit Variable costs per unit Него $ 156 52 (a) Compute the contribution margin per machine hour for each product Hero Contribution margin per unit Machine hours per unit Flip $98 56 $ $ 156 $ 52 104 $ Flip 98 56 42

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 1,980 hours per year. Colt can sell up to 728 units of Hero and 824 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Selling price per unit Variable costs per unit Него $ 156 52 (a) Compute the contribution margin per machine hour for each product Hero Contribution margin per unit Machine hours per unit Flip $98 56 $ $ 156 $ 52 104 $ Flip 98 56 42

FINANCIAL ACCOUNTING
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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Exercise 25-6 (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 1,980 hours per year. Colt can sell up to 728 units of Hero and 824 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Selling price per unit Variable costs per unit Hero $ 156 52 (a) Compute the contribution margin per machine hour for each product Hero Contribution margin per unit Machine hours per unit Contribution margin per machine hour FLID $98 56 (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 (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 156 $ 52 104 S 2 52 $ 728 728 Flip Flip Flip 98 56 42 1 42 824 824 Total Total
Transcribed Image Text:Exercise 25-6 (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 1,980 hours per year. Colt can sell up to 728 units of Hero and 824 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Selling price per unit Variable costs per unit Hero $ 156 52 (a) Compute the contribution margin per machine hour for each product Hero Contribution margin per unit Machine hours per unit Contribution margin per machine hour FLID $98 56 (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 (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 156 $ 52 104 S 2 52 $ 728 728 Flip Flip Flip 98 56 42 1 42 824 824 Total Total
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