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Bethel Company owns a machine that can produce two specialized products.

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Bethel Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV   E25-17 Sales mix determination and analysis   E25-17 Bethel Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine�s capacity is 2,200 hours per year. Both products are sold to a single customer who has agreed to buy all of the company�s output up to a maximum of 3,750 units of Product TLX and 2,000 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. Determine (1) the company�s most profitable sales mix and (2) the contribution margin that results from that sales mix.   Product TLX    Product MTV Selling price per unit . . . . . . . . . .        $12.50                                     $7.50 Variable costs per unit . . . . . . . . .       3.75                             4.50   Check (2) $37,688

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