Calculates the contribution per unit and total contribution

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Reference no: EM133976119

Problem

ElectroTech has received a large order of 6,000 units for SmartCharge, to be delivered in 3 months. However, machine hours are limited to 10,000 hours for the entire period. The management needs to assess feasibility and profitability.Additional Information: Variable cost per unit = $40 Selling price per unit = $65 Fixed cost allocation = $50,000 Machine hours required per unit = 1.8 Monthly capacity = 3,400 machine hours (I) Calculates the contribution per unit and total contribution if full order is fulfilled (II) Evaluates whether machine hours are a limiting factor (III) Determines the maximum units that can be produced within constraints. Get the instant assignment help. (IV) Recommends a course of action using break-even and contribution analysis (V) Discusses any non-financial considerations ElectroTech should evaluate.

Reference no: EM133976119

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