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Harmon Company produces two skateboard models, Basic and Premier. The machines capacity is...

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Accounting

Harmon Company produces two skateboard models, Basic and Premier. The machines capacity
is 1,200 hours per year. Harmon can sell up to 1,600 units of Basic and 900 units of Premier per
year. Financial information for the company is listed below:
Basic Premier
Selling price per unit $100 $195
Variable cost per unit $60 $125
Units of product per 1 machine hour 2 units 1 unit
Determine the contribution margin per machine hour for each skateboard model.
How many units of each model should the company produce to maximize profit? How much
total contribution margin (total dollar amount) will this sales mix produce each month?
Complete the incremental analysis using an Excel worksheet to show the most profitable
solution.
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