A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs...

 

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A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs follow. Machine hours per unit for Mellow is 8 hours and for Crush is 12 hours. The machine's capacity is 3,096 hours per year. Selling price per unit Variable costs per unit Mellow $ 344 200 Crush $452 296 a) For each model, compute the contribution margin per machine hour. Mellow Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Contribution margin per unit Contribution margin per machine hour b) Assuming the company can sell up to 300 units of Mellow and 200 units of Crush per year, determine the best sales mix of products Crush Crush Mellow Total A company produces two surfboard models: Mellow and Crush. Each model's selling price and variable costs follow. Machine hours per unit for Mellow is 8 hours and for Crush is 12 hours. The machine's capacity is 3,096 hours per year. Selling price per unit Variable costs per unit Mellow $ 344 200 Crush $452 296 a) For each model, compute the contribution margin per machine hour. Mellow Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix Contribution margin per unit Contribution margin per machine hour b) Assuming the company can sell up to 300 units of Mellow and 200 units of Crush per year, determine the best sales mix of products Crush Crush Mellow Total

Answer rating: 100% (QA)

Firstly we will have to Calculate Contribution p... View the full answer