My question is how is the 1,875 is calculated for the Units produced for most profitable sales mix for Product MTV below?

Exercise 2517

Sales mix determination and analysis LO A1

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 machines capacity is 2,500

hours per year. Both products are sold to a single customer who has agreed to buy all of the companys

output up to a maximum of 4,250 units of Product TLX and 2,215 units of Product MTV. Selling prices and

variable costs per unit to produce the products follow.

Product TLX Product MTV

Selling price per unit $ 12.00 $ 7.20

Variable costs per unit3.60 4.32

Determine the company's most profitable sales mix and the contribution margin that results from that sales

mix. (Round cost per unit answers to 2 decimal places.)

Product TLXProduct MTV

Contribution margin per unit 8.40 2.88

Units produced per hour 2 5

Contribution margin per production hour 16.80 14.40

Product TLX Product MTV Total

Maximum number of units to be sold 4,250 2,215

Hours required to produce maximum units 2,125 443 2,568

For most profitable sales mixProduct TLX Product MTV Total

Hours dedicated to the production of each product 2,1253752,500

Produce most profitable units until the market demand has been satisfied.

Units produced for most profitable sales mix4,250 1,875

Contribution margin per unit 8.402.88

Total contribution margin35,7005,400 41,100