Optimal Sales Mix Decision Sarah's Company produces two products and selected data is shown below:...
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Accounting
Optimal Sales Mix Decision Sarah's Company produces two products and selected data is shown below: Green $60 $36 Yellow $50 $35 $24 $15 Selling price per unit Less: variable expenses per unit = Contribution margin (CM) per unit Current demand per week (units) CM Ratio Processing time required on the machine per unit (minute) 2,000 2,200 40% 1.00 30% 0.50 The machines full capacity is 2,400 minutes per week. Should Sarahs company focus the machines capacity on Green or Yellow
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