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 $ 65 $ 85 Variable cost per unit $ 30 $ 34 Machine hours per unit 0.5 1.5

The one machine that used to produce both models has a capacity of 95,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $825,000.

Required:

a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 210,000 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 122,500 units of each product. How many units of each model should Pappy's produce in a quarter?