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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,100 units of Prime and 1,700 units of Luxuria
Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,100 units of Prime and 1,700 units of Luxuria in 2019. The following estimates are given for 2019: Prime Luxuria $200 $500 Selling price Direct materials 60 80 Direct labor 80 200 Manufacturing overhead 50 110 Nantucket had an inventory of 240 units of Prime and 125 units of Luxuria at the end of 2018. It has decided that as a measure to counter stock outages it will maintain ending inventory of 390 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 $10.00. There were 150 units of Crimpson in stock at the end of 2018. The management does not want to have any stock of Crimpson at the end of 2019. How many units of Prime watches must be produced in 2019? A. 3,490 units B. 2,860 units C. 3,100 units D. 3,250 units
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