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Pappy's Toys makes two models of a metal toyStandard and DeLuxe. Both models are produced on a single machine. The price and costs of the

Pappy's Toys makes two models of a metal toyStandard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows.

Standard DeLuxe
Price per unit $ 90 $ 110
Variable cost per unit $ 40 $ 44
Machine hours per unit 0.5 1.5

The one machine that used to produce both models has a capacity of 100,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $850,000.

Required:

a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 220,000 units of each product. How many units of each model should Pappy's produce in a quarter?

b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 125,000 units of each product. How many units of each model should Pappy's produce in a quarter?

required A

Standard Model units
DeLuxe Model

units

required B

Standard Model units
DeLuxe Model units

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