The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $8,500 additional fixed costs per month. (Round hours per unlt answers to 1 declmel place. Enter operating losses, If any, as negative values.) 1. Determine the contribution margin per machine hour that each product generates. Product G Product B Contribution margin per u nit Contribution margin per machine hour Product G Product B Total Maximum number of units to be sold Hours required to produce maximum units
2. How many units of Product G and Product B should the company produce if it continues to operate with only one shift? How much total contribution margin does this mix produce each month? Product G Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per u Total contribution margin- one s nit
3. If the company adds another shift, how many units of Product G and Product B should it produce? How much total contribution margin would this mix produce each month? Product G Product B Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per u Total contribution margin two shifts nit