Question: Q 2 Power Recreation assembles two engines, a snowmobile engine and a boat engine. The following table shows the relevant information: Snowmobile Engine Boat Engine
Q Power Recreation assembles two engines, a snowmobile engine and a boat engine. The following table shows the relevant information:
Snowmobile Engine
Boat Engine
tableSelling Price per unit,RsRsVariable cost per unit,RsRsAllocated Fixed Costs per unit of SPRsRsMachine Hours required per unit, hours, hoursMaximum monthly demand, units, units
Only machine hours are available per month for assembling. Calculate and fill in the blanks:
Relevant contribution for decision making
Snowmobile Engine
Boat Engine
Product mix in terms of monthly units to be produced
Snowmobile Engine
Boat Engine
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