$4-48.$ Theory of Constraints

LO $4-5)$

Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to

the required accuracy of the sensor$.$ The Standard model is used for most normal operations while the High$-$Performance model is used

for high$-$altitude and specialized missions. Before shipment, the two models are passed through a machine that, among other things,

certifies the accuracy of the sensor$.$ The company only has one testing machine. The price and costs of the two sensor models are shown

here:

The testing machine used for both models has a capacity of $8,250$ hours annually. Fixed manufacturing costs are $$2,400,000$ annually.

Required

a$.$ Suppose that the maximum annual unit sales that are possible for Brandon Technology are $250,000$ units of the Standard

model and $80,000$ of the High$-$Performance model. How many units of each sensor model should Brandon Technology

produce annually?

b$.$ Suppose that the maximum annual unit sales that are possible for Brandon Technology are $150,000$ units of the Standard

model and $50,000$ of the High$-$Performance model. How many units of each sensor model should Brandon Technology

produce annually?