Colt Company owns a machine that can produce two specialized products. Production time for Product...
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Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine's capacity is 2,400 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4,080 units of Product TLX and 2,220 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Selling price per unit Variable costs per unit Product TLX $14.50 4.35 Product MTV $8.70 5.22 Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Product TLX Product MTV Contribution margin per unit Units produced per hour Contribution margin per production hour Total Product TLX 4,080 Product MTV 2,220 Maximum number of units to be sold Hours required to produce maximum units Product TLX Product MTV Total For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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