Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and...

 

 

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Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,620 hours per year. Colt can sell up to 512 units of Hero and 896 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Hero $ 156 Variable costs per unit 52 Flip $ 98 56 (a) Compute the contribution margin per machine hour for each product. Contribution margin per unit Contribution margin per machine hour Hero Flip (b) Determine the best sales mix of products. Hero Flip Total Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix (c) Compute the total contribution margin for the best sales mix. Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Hero Flip Total Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,620 hours per year. Colt can sell up to 512 units of Hero and 896 units of Flip per year. Selling prices and variable costs follow. Selling price per unit Hero $ 156 Variable costs per unit 52 Flip $ 98 56 (a) Compute the contribution margin per machine hour for each product. Contribution margin per unit Contribution margin per machine hour Hero Flip (b) Determine the best sales mix of products. Hero Flip Total Units produced and sold for most profitable sales mix Hours required to produce most profitable sales mix (c) Compute the total contribution margin for the best sales mix. Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Hero Flip Total

Answer rating: 100% (QA)

Answer Colt Company Skateboard Production Analysis a Contribution Margin per Machine Hour Calculate Contribution Margin per Unit Hero Contribution Mar... View the full answer