Question: Problem 2 3 - 3 A ( Algo ) Sales mix strategies LO P 3 Edge Company produces two models of its product with the

Problem 23-3A (Algo) Sales mix strategies LO P3
Edge Company produces two models of its product with the same machine. The machine has a capacity of 160 hours per month. The following information is available.
StandardDeluxeSelling price per unit$ 170$ 200Variable costs per unit70120Contribution margin per unit$ 100$ 80Machine hours per unit1hour2hoursMaximum unit sales per month550units200units
Required:
Required:
Compute the cost per unit for each alternative method of making the part.
Should Haver make or buy the part? If Haver makes the part, which production method should it use?

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