Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below: Product A B C Selling price $11 $14 $16 Variable costs and expenses $6 $12 $13 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.25.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ LINK TO TEXT Assuming 3,000 additional machine hours are available, which product should be manufactured? LINK TO TEXT What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the products $ (2) Allocated entirely to the product identified above $
Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below: Product A B C Selling price $11 $14 $16 Variable costs and expenses $6 $12 $13 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.25.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ LINK TO TEXT Assuming 3,000 additional machine hours are available, which product should be manufactured? LINK TO TEXT What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the products $ (2) Allocated entirely to the product identified above $
Related questions
Zurek Inc has 6,700 machine hours available each month. Thefollowing information on the company's three products isavailable:
| Product 1 | Product 2 | Product 3 | |
| Contribution margin per unit | $16.30 | $19.30 | $8.8 |
| Machine hours per unit | $3.00 | $2.00 | $1.00 |
The market demand is limited to 2,650 units of each of the threeproducts. What is the maximum possible contribution margin thatZurek could make in any month?
A. $63,465
B. $59,965
C. $79,210
D. $109,210
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available.
| Product G | Product B | ||||||||||
| Selling price per unit | $ | 120 | $ | 150 | |||||||
| Variable costs per unit | 45 | 90 | |||||||||
| Contribution margin per unit | $ | 75 | $ | 60 | |||||||
| Machine hours to produce 1 unit | 0.4 | hours | 1.0 | hours | |||||||
| Maximum unit sales per month | 500 | units | 250 | 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 $7,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)
Determine the contribution margin per machine hour that each product generates
| Product G | Product B | Total | |
| Contribution Margin per unit | $75.00 | $60.00 | |
| Machine hours per unit | 0.4 | 1.0 | |
| Contribution margin per machine hour | $187.50 | $60.00 | |
| Maximum number of units sold | 500 | 250 | |
| Hours required to produce maximum units | 200 | 250 | 450 |
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 margin does this mix produce each month?
| Product G | Product B | Total | |
| Hours dedicated to the production of each product | |||
| Units produced for most profitable sales mix | |||
| Contribution margin per unit | |||
| Total contribution margin - one shift |
3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total contribution margin would this mix produce each month?
| Product G | Product B | Total | |
| Hours dedicated to the production of each product | |||
| Units produced for most profitable sales mix | |||
| Contribution margin per unit | |||
| Total contribution margin - two shifts |
4. Suppose that the company determines that it can increase Product Gรขยยs maximum sales to 600 units per month by spending $6,500 per month in marketing efforts. Should the company pursue this strategy and the double shift?
| Product G | Product B | Total | |
| Hours dedicated to the production of each product | |||
| Units produced for most profitable sales mix | |||
| Contribution margin per unit | |||
| Total contribution margin - two shifts and marketing campaign |
