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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,200 units of Prime and 1,200 units of
Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,200 units of Prime and 1,200 units of Luxuria in 2020. The following estimates are given for 2020: Prime Luxuria Selling price Direct materials $200 $500 50 60 Direct labor 80 170 Manufacturing overhead 50 120 Nantucket had an inventory of 210 units of Prime and 85 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 380 units of Prime and 250 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $11. There were 100 units of Crimpson in stock at the end of 2019. The management does not want to have any A. $1,082,650 OB. $907,650 OC. $1,084,350 OD. $996,000
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