The most profitable sales mix for Tyler Guitars is to produce 250 acoustic guitars and 0 electric guitars per month, which will generate a total contribution margin of $15,000.
The most profitable sales mix for Tyler Guitars is to produce the maximum number of acoustic guitars and the minimum number of electric guitars.
This is because the contribution margin per machine hour for acoustic guitars is higher than the contribution margin per machine hour for electric guitars.
Contribution margin per machine hour:
Acoustic guitars: $60
Electric guitars: $40
Maximum guitar sales per month:
Acoustic guitars: 250
Electric guitars: 225
Most profitable sales mix:
Acoustic guitars: 250
Electric guitars: 0
Total contribution margin for the most profitable sales mix:
Acoustic guitars: 250 guitars * $60/guitar = $15,000
Electric guitars: 0 guitars * $40/guitar = $0
Total contribution margin: $15,000 + $0 = $15,000
Therefore, the most profitable sales mix for Tyler Guitars is to produce 250 acoustic guitars and 0 electric guitars per month, which will generate a total contribution margin of $15,000.