Oracle PeaopleSoft Sign-in × hce canvas-Google Search × © Chegg Study | Guided S

Question

Oracle PeaopleSoft Sign-in × hce canvas-Google Search × © Chegg Study | Guided Solution × + A https://newconnect.mheducation.com/flow/connect.html ? a Search Ch 10 P 10-5A 6 Help Save& Exit Submit Saved Check my work Problem 10-5A Analysis of sales mix strategies LO A1 Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. 20 points ProductGProduct B Selling price per Variable costs per contribution margin per unit Machine houra to produce 1 unit 180 75 105 0.4 hours 550 units unit 210 126 84 1.0 houre unit eBook Maximam unit sales per month 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $10,500 additional flxed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) Ask Print 1. Determine the contribution margin per machine hour that each product generates. Product CG Product B Contribution ma rgin per unit Contribution margin per machine hour Product G Product B Maximum number of units to be sold 550 200 Hours required to produce maximum units 2. How many units of Product G and Product B should the company produce if it continues to operate with only one shift? How much total contribution maroin does this mix produce each month? ProductG Product B Total Hours dedicated to the production of each product

Explanation / Answer

1 product G product B Contribution margin per unit 105 84 machine hours per unit 0.4 1 contribution margin per machine hour 262.5 84 product G product B total Maximum number of units to be sold 550 200 hours required to produce maximum units 220 200 420 2) product G product B total hours dedicated to the production of each product 176 176 units produced for most profitable sales mix 440 contribution margin per unit 105 total contribution margin - one shift 46200 46,200 3) product G product B total hours dedicated to the production of each product 220 132 352 units produced for most profitable sales mix 550 132 contribution margin per unit 105 84 total contribution margin-two shifts 57750 11088 68838 contribution margin -one shifts 46,200 change in contribution margin 22,638 change in fixed costs 10,500 change in operating income (loss) 12,138 should the company pursue marketing campaign yes 4) product G product B total hours dedicated to the production of each product 240 112 352 units produced for most profitable sales mix 600 112 contribution margin per unit 105 84 total contribution margin-two shifts & marketing campaogn 63000 9408 72408 contribution margin -two shifts without marketing ca 68,838 change in contribution margin 3,570 Additional marketing costs 9,500 change in fixed costs 10,500 change in operating income (loss) -16,430 should the company pursue marketing campaign No

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.