Question
Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and costs of
Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows. Price per unit Variable cost per unit Machine hours per unit Standard DeLuxe $ 75 $ 34 0.5 $ 95 $ 38 1.5 The one machine that used to produce both models has a capacity of 97,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $835,000. Required: a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 214,000 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 123,500 units of each product. How many units of each model should Pappy's produce in a quarter? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 214,000 units of each product. How many units of each model should Pappy's produce in a quarter? Standard Model DeLuxe Model units units
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