Colt 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 2,750 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 4,700 units of Product TLX and 2,500 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
(2) The contribution margin that results from that salesmix.

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ProductTLX Product MTV Selling price per unit .. Variable costs per unit.... $15.00 4.80 $9.50 5.50