1)
Product G | Product B | ||
Contribution margin per unit | 105.00 | 84.00 | |
Machine hours per unit | 0.40 | 1.00 | |
Contribution margin per machine hour | 262.50 | 84.00 | |
Product G | Product B | Total | |
Maximum number of units to be sold | 550.00 | 200.00 | |
Hours required to produce maximum units | 220.00 | 200.00 | 420.00 |
2)
Product G | Product B | Total | |
Hours dedicated to the production of each product | 176 | 176 | |
Units produced for most profitable sales mix | 440 | ||
Contribution margin per unit | $ 105.00 | ||
Total contribution margin - one shift | $46,200.00 | 46,200.00 |
3)
Product G | Product B | Total | |
Hours dedicated to the production of each product | 220.00 | 132.00 | 352.00 |
Units produced for most profitable sales mix | 550.00 | 132.00 | |
Contribution margin per unit | 105.00 | 84.00 | |
Total contribution margin - two shifts | 57,750.00 | 11,088.00 | 68,838.00 |
Total contribution margin - one shift | 46,200.00 | ||
Change in contribution margin | 22,638.00 | ||
Change in fixed costs | 10,500.00 | ||
Change in operating income (loss) | 12,138.00 | ||
Should the company add another shift? | Yes |
4)
Product G | Product B | Total | |
Hours dedicated to the production of each product | 240.00 | 112.00 | 352.00 |
Units produced for most profitable sales mix | 600.00 | 112.00 | |
Contribution margin per unit | 105.00 | 84.00 | |
Total contribution margin - two shifts and marketing campaign | 63,000.00 | 9,408.00 | 72,408.00 |
Contribution margin - two shifts without marketing campaign | 68,838.00 | ||
Change in contribution margin | 3,570.00 | ||
Additional marketing costs | 9,500.00 | ||
Change in fixed costs | 10,500.00 | ||
Change in operating income (loss) | -16,430.00 | ||
Should the company pursue the marketing campaign? | No |
Edgerron Company is able to produce two products, G and B, with the same machine in...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B Selling price per unit $ 90 $ 120 Variable costs per unit 30 72 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit 0.4 hours 1.0 hours Maximum unit sales per month 600 units 200 units The company presently operates the machine for a single eight-hour...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G $ 180 75 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product B $ 210 126 $ 84 $ 105 0.4 hours 1.0 hours 600 units 200 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $150 60 $ 90 0.4 hours 550 units Product B $ 180 108 $ 72 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for 22...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 50 10 $ 40 Product B $ 80 48 $ 32 1.0 hours 200 units 0.4 hours 600 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G $ 150 Product B $ 180 - 60 108 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month $ 90 0.4 hours 550 units $ 72 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Product G $ 190 80 Product B $ 220 132 Contribution margin per unit $ 110 $ 88 0 unit Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 550 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 80 25 $ 55 0.4 hours 600 units Product B $ 110 66 $ 44 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 140 55 $ 85 Product B $ 170 102 $ 68 0.4 hours 500 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product GProduct BSelling price per unit $90 $120 Variable costs per unit 30 72 Contribution margin per unit $60 $48 Machine hours to produce 1 unit0.4hours 1.0hours Maximum unit sales per month600units 200units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine...
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product G $ 132 50 $ 82 0.4 hours 600 units Product B $ 160 96 $ 64 1.0 hours 150 units The company presently operates the machine for a single eight-hour shift for...