Question
Christine's Chronographs makes two models of a high-end watchthe model 94 and the model 101. Both models go through a special polishing step that requires
Christine's Chronographs makes two models of a high-end watchthe model 94 and the model 101. Both models go through a special polishing step that requires the use of the single polishing machine at the company. The price and costs of the two models appear as follows.
Model 94 | Model 101 | ||||||
Price per watch | $ | 5,100 | $ | 9,700 | |||
Variable cost per watch | $ | 2,600 | $ | 5,800 | |||
Polishing hours per watch | 2 | 3 | |||||
The polishing machine used for both models has a capacity of 33,600 hours annually. Fixed manufacturing costs are $7,800,000 annually.
Required:
a. Suppose that the maximum annual unit sales that Christine's can achieve is 14,000 units of the Model 94 and 12,200 of the Model 101. How many units of each watch model should Christine's produce annually?
b. Suppose that the maximum annual unit sales that Christine's achieve make is 12,000 units of the Model 94 and 9,000 of the Model 101. How many units of each watch model should Christine's produce annually?
101. How many units of each watch model should Christine's produce annually! b. Suppose that the maximum annual unit sales that Christine's achieve make is 12,000 units of the Model 94 and 9,000 of the Model 101. How many units of each watch model should Christine's produce annually? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum annual unit sales that Christine's can achieve is 14,000 units of the Model 94 and 12,200 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 units units Check my 101. How many units of each watch model should Christine's produce annually! 6. Suppose that the maximum annual unit sales that Christine's achieve make is 12,000 units of the Model 94 and 9,000 of the Model 101. How many units of each watch model should Christine's produce annually? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum annual unit sales that Christine's achieve malce is 12,000 units of the Model 94 and 9,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 units untisStep by Step Solution
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