Pappy's Toys makes two models of a metal toy—Standard and DeLuxe. Both models are produced on a single machine. The pric
Posted: Sun Jun 05, 2022 6:47 pm
Pappy's Toys makes two models of a metal toy—Standard and
DeLuxe. Both models are produced on a single machine. The price and
costs of the two models appear as follows.
The one machine that used to produce both models has a capacity
of 92,000 machine-hours per quarter. Fixed manufacturing costs per
quarter are $810,000.
Required:
a. Suppose that the maximum unit sales in
a quarter that Pappy's can achieve is 204,000 units of each
product. How many units of each model should Pappy's produce in a
quarter?
Standard Model= _______ units
DeLuxe Model= ________ units
b. Suppose that the maximum unit sales in
a quarter that Pappy's can achieve is 121,000 units of each
product. How many units of each model should Pappy's produce in a
quarter?
Standard Model= _______ units
DeLuxe Model= ________ units
DeLuxe. Both models are produced on a single machine. The price and
costs of the two models appear as follows.
The one machine that used to produce both models has a capacity
of 92,000 machine-hours per quarter. Fixed manufacturing costs per
quarter are $810,000.
Required:
a. Suppose that the maximum unit sales in
a quarter that Pappy's can achieve is 204,000 units of each
product. How many units of each model should Pappy's produce in a
quarter?
Standard Model= _______ units
DeLuxe Model= ________ units
b. Suppose that the maximum unit sales in
a quarter that Pappy's can achieve is 121,000 units of each
product. How many units of each model should Pappy's produce in a
quarter?
Standard Model= _______ units
DeLuxe Model= ________ units