Tyler Guitars makes acoustic and electric guitars. It is struggling to determine the profitability of each guitar and deciding on which guitar to focus its sales efforts. Tyler currently has a capacity of 352 machine hours per month. The Tableau Dashboard shows data from the recent month.

 Tableau DA 10-3: Mini-Case, Analyzing sales mix strategies LO P3
Tyler Guitars makes acoustic and electric guitars. It is struggling to determine the profitability of each guitar and deciding on which guitar to focus its sales efforts. Tyler currently has a capacity of 352 machine hours per month. The Tableau Dashboard shows data from the recent month.

 

click here to see full question Data.

1. Compute contribution margin per machine hour for (a) acoustic guitars and (b) electric guitars.

2. Assume the maximum demand for acoustic guitars is 131 units (not 200 units). How many units of each type of guitar should the company produce?

3. Determine the month’s total contribution margin from the sales mix in part 2.

 

Thanks