Colt Company owns a machine that can produce two specialized products. Production time forProduct TLX is two units per hour and for Product MTV is four units per hour. The machine's capacityis 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of thecompany's output up to a maximum of 4,250 units of Product TLX and 1,990 unts of Product MTV.Selling prices and variable costs per unit to produce the products follow.S per unitProductTLXProductMTVSelling priceper unit13.50S 8.10Variable costsper unit4.054.86Determine the company's most profitable sales mix and the contribution margin that results fromthat sales mix. (Round per unit contribution margins to 2 decimal places.)

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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 four units per hour. The machine's capacity is 2,500 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 4,250 units of Product TLX and 1,990 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. S per unit Product TLX Product MTV Selling price per unit 13.50 S 8.10 Variable costs per unit 4.05 4.86 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.)

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 four units per hour. The machine's capacity is 2,500 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 4,250 units of Product TLX and 1,990 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. S per unit Product TLX Product MTV Selling price per unit 13.50 S 8.10 Variable costs per unit 4.05 4.86 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.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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