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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 1,100 units of Luxuria in

Nantucket Industries manufactures and sells two models of?watches, Prime and Luxuria. It expects to sell 3,300 units of Prime and 1,100 units of Luxuria in 2020.The following estimates are given for?2020:

Prime

Luxuria

Selling price

?$200

?$500

Direct materials

image text in transcribed
Nantucket Industries manufactures and sells two models of watches. Prime and Luxuria, It expects to sell 3,300 units of Prime and 1.100 units of Luxuria In 2020.The following estimates are given for 2020: Prime Luxuria Selling price $200 $500 Direct materials 50 90 Direct labor 60 180 Manufacturing overhead 60 100 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 380 units of Prime and 230 units of Luxuria. Each Luxun'a watch requires one unit of Crlmpson and has to be imported at a cost of $15. There were 150 units of Crimpeon in stock at the end of 2019.The management does not want to have any stock of Crimpson at the end at 2020, How many units of Prime watches must be produced in 2020'? O A. 3,440 units 0 B. 3,680 units 0 C. 3,060 units 0 D. 3,300 units

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