Answered

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Compute the most profitable sales mix for the company. 2. Determine the month's total contribution margin for the most profitable sales mix. (Leave no cells blank - be certain to enter "0" wherever required.)

Sagot :

Tundexi

Answer:

Note: The full question is attached as picture below

                                                                   Acoustic    Electric        Total

(a) Hours dedicated to each product           262            90  

Units produced for most profitable mix       131              30

(b)  Contribution Margin per unit                  $130           $180

Total Contribution Margin - two shifts         $17,030      $5,400   $22,430

Total Contribution Margin - one shift                                              $11,440

Incremental Revenue                                                                       $10,990

Incremental Expense                                                                        $9,000

Total Incremental Income                                                                $1,990

Conclusion: Yes, the company should add another shift

                                                               Acoustic    Electric        Total

Sales Price                                                $225          $300

Variable Cost                                            $95             $120

Contribution Margin per unit                   $130            $180

Machine hours per unit                                2                 3  

Contribution Margin per machine hour  $65              $60  

Maximum Demand                                   131                 65

Hours Required                                        262              195

Hours Used                                               176

Contribution Margin (One Shift)          $11,440           -             $11,440

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View image Tundexi
View image Tundexi
View image Tundexi
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