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In: Accounting

Exercise 7.30 a-c Metropole Inc. can produce three different products interchangeably on two machines. The accounting...

Exercise 7.30 a-c

Metropole Inc. can produce three different products interchangeably on two machines. The accounting department provides the following information on these products:
A B C
Selling price per unit $23 $37 $45
Variable costs per unit $12 $29 $37
Units produced per machine hour 10 12.5 20
Minimum units produced 125 none 165
Maximum units produced 200 none 220

The total machine hours available are 105.
Determine the number of machine hours per unit for each product. (Round answers to 2 decimal places, e.g. 1.25.)
Product A Product B Product C
Number of hours per unit
Determine the contribution margin per machine hour for each product. (Round answers to 2 decimal places, e.g. 15.25.)
Product A Product B Product C
Contribution margin per machine hour $ $ $
Determine how many units of each product should be produced and the total contribution margin.
Units Total CM
Product A $
Product B
Product C
    Total contribution margin $

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Expert Solution

ekkarill92 answered 2 years ago
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