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Brian Akins Manufacturing (BAM) has the capability to produce a variety of industrial products, including a number of types of widgets. In the past, BAM

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Brian Akins Manufacturing ("BAM") has the capability to produce a variety of industrial products, including a number of types of widgets. In the past, BAM has manufactured 2 different types of widget (Type A and Type B). Each of these is sold in a market that approximates a perfectly competitive market. Production is limited to standard shifts operating Monday through Friday due to a contract with the relevant labor union. The average labor rate is $10 per hour and the company currently employs 10 laborers who work a single 8-hour shift each day. The company employs several salaried marketing and administrative employees. The following table provides price and cost data collected from the accounting department: HAM: Per-Unit Price and Cost Data by Widget Type Type A Type B Gizmo Widget Price 100 90 See marketing cuffmates Labor 40 20 20 20 140 50 SOA 4 Depreciation 40 BAM bai recently developed a new widget, the "Gizmo Widget" The Gumo Widget is designed to serve a sicbe demand segment in the manufacturing industry. Labor costs are relatively low but this in partially offset by higher materials costs. The company recently upgraded machinery to enable the Gumo Wilpot to be produced and this is reflected in higher depreciation charges BAM's markning Hail produced the following sales projections regarding the Gumo Widget Prime Projected Workly Sabee mall 140(b Ignore the Girmo Widget for the moment. How should BAM be allocating production between the Type A and Type B widgets? Be sure to briefly explain your approach/reasoning.What h the profit mat izing number of Gizmo Widgets, that should be reduced! He sure to account for the fact that Gumo Widgets displace other types of widgets Acan be wire you provide a beef caplanation of your approachy reasoning

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