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Edge Company produces two models of its product with the same machine. The machine has a capacity of 150 hours per month. The following information is avallable. Required: 1. Determine the contribution margin per machine hour for each model. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Product Contribution Margin } & Standard & Deluxe \\ \hline Contribution margin per unit & & \\ \hline & & & \\ \hline Contribution margin per machine hour & & \\ \hline \end{tabular} 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? \begin{tabular}{|l|l|l|l|l|} \hline Hours dedicated to the production of each product & Standard & Deluxe & \\ \hline Units produced for most profitable sales mix & & & \\ \hline Contribution margin per unit & & & \\ \hline Total contribution margin & & & \\ \hline \end{tabular} 3. Assume the maximum demand for the Standard model is 80 units (not 500 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? \begin{tabular}{|l|l|l|l|l|} \hline Hours dedicated to the production of each product & Standard & Deluxe & Total \\ \hline Units produced for most profitable sales mix & & & \\ \hline Contribution margin per unit & & & \\ \hline Total contribution margin & & & \\ \hline \end{tabular}

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