Colt Company owns a machine that can produce two specialized products. Production time for Product TLX...
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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 five units per hour. The machine's capacity is 2,300 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 3,910 units of Product TLX and 5,465 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Selling price per unit Variable costa per unit Contribution margin per unit Units produced per hour Contribution margin per production hour 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.) Maximum number of units to be sold Hours required to produce maximum units Product TLX Product MTV $13.00 3.90 For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $7.80 4.68 Product TLX Product TLX 3,910 Product TLX Product MTV Product MTV 5 5,465 Product MTV Total Total 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 five units per hour. The machine's capacity is 2,300 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 3,910 units of Product TLX and 5,465 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Selling price per unit Variable costa per unit Contribution margin per unit Units produced per hour Contribution margin per production hour 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.) Maximum number of units to be sold Hours required to produce maximum units Product TLX Product MTV $13.00 3.90 For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $7.80 4.68 Product TLX Product TLX 3,910 Product TLX Product MTV Product MTV 5 5,465 Product MTV Total Total
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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