Enabled: Test 4 - Chapters 23-24 & Comprehensiv... Saved A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs follow. Machine hours per unit for Mellow is 8 hours and for Crush is 12 hours. The machine's capacity is 3,048 hours per year. Selling price per unit Mellow $ 332 Crush $ 436 Variable costs per unit 196 292 19 a) For each model, compute the contribution margin per machine hour. Contribution margin per unit Mellow Crush Contribution margin per machine hour b) Assuming the company can sell up to 300 units of Mellow and 200 units of Crush per year, determine the best sales mix of products. Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Mellow Crush Total Ac Graw < Prev 12 of 24 i Next > hp
Enabled: Test 4 - Chapters 23-24 & Comprehensiv... Saved A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs follow. Machine hours per unit for Mellow is 8 hours and for Crush is 12 hours. The machine's capacity is 3,048 hours per year. Selling price per unit Mellow $ 332 Crush $ 436 Variable costs per unit 196 292 19 a) For each model, compute the contribution margin per machine hour. Contribution margin per unit Mellow Crush Contribution margin per machine hour b) Assuming the company can sell up to 300 units of Mellow and 200 units of Crush per year, determine the best sales mix of products. Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Mellow Crush Total Ac Graw < Prev 12 of 24 i Next > hp
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Enabled: Test 4 - Chapters 23-24 & Comprehensiv...
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A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs follow. Machine hours
per unit for Mellow is 8 hours and for Crush is 12 hours. The machine's capacity is 3,048 hours per year.
Selling price per unit
Mellow
$ 332
Crush
$ 436
Variable costs per unit
196
292
19
a) For each model, compute the contribution margin per machine hour.
Contribution margin per unit
Mellow
Crush
Contribution margin per machine hour
b) Assuming the company can sell up to 300 units of Mellow and 200 units of Crush per year, determine the best
sales mix of products.
Units produced and sold for most profitable sales mix
Hours required to produce most profitable sales mix
Mellow
Crush
Total
Ac
Graw
< Prev
12 of 24 i
Next >
hp
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