Ques 1 | |||
Product G | Product B | ||
Contribution margin per unit | $ 55.00 | $ 44.00 | |
Machine hours per unit | 0.4 | 1 | |
Contribution margin per machine hour | $ 137.50 | $ 44.00 | |
Product G | Product B | Total | |
Maximum number of units to be sold | 600 | 200 | |
Hours required to produce maximum units | 240 | 200 | 440 |
Ques 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 | $ 55.00 | ||
Total contribution margin - one shift | $24,200.00 | $24,200.00 | |
Ques 3 | |||
Product G | Product B | Total | |
Hours dedicated to the production of each product | 240 | 112 | 352 |
Units produced for most profitable sales mix | 600 | 112 | |
Contribution margin per unit | $ 55.00 | $ 44.00 | |
Total contribution margin - two shifts | $33,000.00 | $4,928.00 | $37,928.00 |
Total contribution margin - one shift | $24,200.00 | ||
Change in contribution margin | $13,728.00 | ||
Change in fixed costs | $ 5,500.00 | ||
Change in operating income (loss) | $ 8,228.00 | ||
Should the company add another shift? | Yes | ||
Ques 4 | |||
Product G | Product B | Total | |
Hours dedicated to the production of each product | 280 | 72 | 352 |
Units produced for most profitable sales mix | 700 | 72 | |
Contribution margin per unit | $ 55.00 | $ 44.00 | |
Total contribution margin - two shifts and marketing campaign | $38,500.00 | $3,168.00 | $ 41,668 |
Contribution margin - two shifts without marketing campaign | $ 37,928 | ||
Change in contribution margin | $ 3,740 | ||
Additional marketing costs | $ 4,500 | ||
Change in fixed costs | $ 5,500 | ||
Change in operating income (loss) | $ (6,260) | ||
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. 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...
Edgerron 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 $ 160 Product B $ 190 Selling price per unit Variable costs per unit Contribution margin per 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 shift for 22 working days each month....
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...
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 $ 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...