Bethel Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine€™s capacity is 2,200 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 3,750 units of Product TLX and 2,000 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. Determine
(1) The company€™s most profitable sales mix and
(2) The contribution margin that results from that salesmix.

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ProductTLX Product MTV Selling price per unit .. Variable costs p $12.50 3.75 $7.50 4.50 er unit ..