Question

CH 23 #3

Check my work 4 Exercise 23-6 Sales mix determination and analysis LO P3 1.11 points Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is four units per hour. The machine's capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4,250 units of Product TLX and 4,802 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. eBook $ per unit Selling price per unit Variable costs per unit Product TLX $13.50 4.05 Product MTV $8.10 4.86 Hint Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Print Product TLX Product MTV References Contribution margin per unit Contribution margin per production hour Total Product TLX 4,250 Product MTV 4,802 Maximum number of units to be sold Hours required to produce maximum units For Most Profitable Sales Mix Product TLX Product MTV Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

Answer 1

Product TLX Contribution 9.45 P.lu (a) margin Units Per houx (6) 3 Contributich mangin per Bodilar haxlaxb) 28135 Podot MIV 3.24 4 12.96 4802 maximum numbes gosits to be solda) Units Pa hour (6) Hours segund poodwe menim Outlu 4250 3 14 17 1200.52655 Bodht For most Boftallo Sales Mix Bodut Boot TLX MTV Total Hours dedicated to prodution of each 1417 2500 500-1479) Unit Bodied for cost Beliebte Scle Mita) 4250 4332 Contribuitich margin pen Unit (6) Total Contributich mangin (axb) 401625 14035.68 54198.18 3:24