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Edge Company produces two models of its product with the same machine. The machine has a capacity of 174 hours per month. The following information is available.

	Standard		Deluxe
Selling price per unit	$ 240		$ 270
Variable costs per unit	105		162
Contribution margin per unit	$ 135		$ 108
Machine hours per unit	1	hour	2	hours
Maximum unit sales per month	650	units	250	units

1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Standard Deluxe Contribution margin per unit Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is 90 units (not 650 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

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