Practice problem 3. Product Mix Decision U-Develop makes metal and wood picture frames The metal frames take 30 minutes of machine time/unit The wood frames take 60 minutes of machine time/unit U-Develop Frame Department Price/unit Variable costs/unit: Direct materials Direct labor Variable MOH Contribution Margin Fixed costs: Fixed MOH Selling & admin. 00.00 + Metal Frames Wood Frames $50 $80 $8 $22 24 20 4 50 $30 $30 $3,000 1,500 $4,500 Total fixed costs Strategy if machine-hours (MH) are unlimited: How many metal frames? How many wood frames? " Reason: Strategy if machine-hours (MH) are limited: How many metal frames? " How many wood frames? Reason: