Handy Combs, Inc. makes and sells brushes and combs. It can sell all of either product...

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Handy Combs, Inc. makes and sells brushes and combs. It can sell all of either product it can make. The following data are pertinent to each respective product: Brushes 8 P12.00 Combs 20 P4.00 Units of output per machine hour Selling price per unit Product cost per unit Direct material Direct labor Variable overhead Total fixed overhead is P380,000. The company has 40,000 machine hours available for production. What sales mix will maximize profits? P1.00 2.00 0.50 P1.20 0.10 0.05 Handy Combs, Inc. makes and sells brushes and combs. It can sell all of either product it can make. The following data are pertinent to each respective product: Brushes 8 P12.00 Combs 20 P4.00 Units of output per machine hour Selling price per unit Product cost per unit Direct material Direct labor Variable overhead Total fixed overhead is P380,000. The company has 40,000 machine hours available for production. What sales mix will maximize profits? P1.00 2.00 0.50 P1.20 0.10 0.05

Answer rating: 100% (QA)

Lets calculate the contribution margin per unit and the contribution margin ratio for each product F... View the full answer