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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,300 units of Prime and 1,700 units of
Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,300 units of Prime and 1,700 units of Luxuria in 2020. The following estimates are given for 2020: Prime Luxuria Selling price Direct materials $200 $500 70 70 Direct labor 60 Manufacturing overhead 60 200 150 Nantucket had an inventory of 240 units of Prime and 115 units of Luxuria at the end of 2019. It has decided that as a measure to counter stock outages it will maintain ending inventory of 390 units of Prime and 220 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $15. There were 120 units of Crimpson in stock at the end of 2019. The management does not want to have any OA. $25,275 OB. $25,500 OC. $27,075 OD. $51,750
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