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	$	140		$	160
Variable cost per unit	$	60		$	64
Machine hours per unit		0.5			1.5

The one machine that used to produce both models has a capacity of 110,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $900,000.

Required:

a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 240,000 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 130,000 units of each product. How many units of each model should Pappy's produce in a quarter?

A.

Standard Model		Units
Deluxe Model		Units

B.

Standard Model		Units
Deluxe Model		Units