Edge Company produces two models of its product with the same machine. The machine has a capacity of 138 hours per month. Thefollowing information is available.Selling price per unitVariable costs per unitContribution margin per unitMachine hours per unitMaximum unit sales per monthRequired:Contribution margin per unit1. Determine the contribution margin per machine hour for each model.Product Contribution MarginContribution margin per machine hourHours dedicated to the production of each productUnits produced for most profitable sales mixContribution margin per unitTotal contribution marginStandard$ 6015$451 hour600 unitsHours dedicated to the production of each productUnits produced for most profitable sales mixContribution margin per unitTotal contribution marginDeluxe$ 9054$362 hours200 units2. How many units of each model should the company produce? How much total contribution margin does this mixproduce per month?StandardTotalStandardDeluxe3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model shouldthe company produce? How much total contribution margin does this mix produce per month?StandardDeluxeDeluxeTotal

Name: Edge Company produces two models of its product with the same machine
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Description: Edge Company produces two models of its product with the same machine. The machine has a capacity of 138 hours per month. Thefollowing information is available.Selling price per unitVariable costs per unitContribution margin per unitMachine hours pe

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Edge Company produces two models of its product with the same machine. The machine has a capacity of 138 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: Contribution margin per unit 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per machine hour standard. $ 60 15 $ 45 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 hour 600 units Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe $ 90 54 $36 2 hours 200 units 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 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 138 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: Contribution margin per unit 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Contribution margin per machine hour standard. $ 60 15 $ 45 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 hour 600 units Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Deluxe $ 90 54 $36 2 hours 200 units 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 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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

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