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Exercise 23-6 (Static) Sales mix LO P3 Colt Company produces two skatteboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 150 50 Flip $.95 55

Exercise 23-6 (Static) Sales mix LO P3 Colt Company produces two skatteboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 150 50 Flip $.95 55

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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(a) Compute the contribution margin per machine hour for each product. Hero Contribution margin per unit 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 (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 Него Flip Flip Flip Total Total
Transcribed Image Text:(a) Compute the contribution margin per machine hour for each product. Hero Contribution margin per unit 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 (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 Него Flip Flip Flip Total Total
Exercise 23-6 (Static) 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 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 150 50 Flip $95 55
Transcribed Image Text:Exercise 23-6 (Static) 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 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Variable costs per unit Hero $ 150 50 Flip $95 55
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