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Unformatted text preview: 5,400 MH Pelta 39,000 units = 39,000 MH Tersa 2,240 (5,600 MH 2.5 MH/unit) units = 5,600 MH (50,000 5,400 39,000) Total 50,000 MH 4. The optimal product mix in Part 3 satisfies the demand for Nealy and Pelta and leaves only 2,260 units (4,500 2,240) of Tersa unfilled. These remaining units of Tersa require 5,650 machine hours (2,260 units* 2.5 MH per unit). The maximum price Marion Taylor is willing to pay for extra machine hours is $398, which is the unit contribution per machine hour for additional units of Tersa. So, total cost per machinehour for these units will be $398 + $200 = $598 per machinehour....
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- Spring '11