Required: 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Contribution margin per machine hour Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe 3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Total Deluxe Total
Required: 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per unit Contribution margin per machine hour Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Standard 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe 3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Total Deluxe Total
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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![Required:
1. Determine the contribution margin per machine hour for each model.
Product Contribution Margin
Contribution margin per unit
Contribution margin per machine hour
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Standard
2. How many units of each model should the company produce? How much total contribution margin does this mix
produce per month?
Standard
Deluxe
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Deluxe
3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should
the company produce? How much total contribution margin does this mix produce per month?
Standard
Total
Deluxe
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45ecc33f-dfe9-42b4-b789-0ac6bcbaaba1%2Fe5071004-a98b-41c1-b394-1eb5b93043e0%2Fqandzxd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
1. Determine the contribution margin per machine hour for each model.
Product Contribution Margin
Contribution margin per unit
Contribution margin per machine hour
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Standard
2. How many units of each model should the company produce? How much total contribution margin does this mix
produce per month?
Standard
Deluxe
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
Deluxe
3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should
the company produce? How much total contribution margin does this mix produce per month?
Standard
Total
Deluxe
Total
![Edge Company produces two models of its product with the same machine. The machine has a capacity of 136 hours per
month. The following information is available.
Selling price per unit
Variable costs per unit
Contribution margin per unit.
Machine hours per unit
Maximum unit sales per month
Required:
Standard
$ 50
10
$ 40
1 hour
600 units
Deluxe
$80
48
$32
2 hours
200 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45ecc33f-dfe9-42b4-b789-0ac6bcbaaba1%2Fe5071004-a98b-41c1-b394-1eb5b93043e0%2Fc4wi1qs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Edge Company produces two models of its product with the same machine. The machine has a capacity of 136 hours per
month. The following information is available.
Selling price per unit
Variable costs per unit
Contribution margin per unit.
Machine hours per unit
Maximum unit sales per month
Required:
Standard
$ 50
10
$ 40
1 hour
600 units
Deluxe
$80
48
$32
2 hours
200 units
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