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 1 year ago

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