Question 3 - Constrained Resource Mac & Nac manufactures two types of women's handhaps a handbag that can be worn to (model A), and an over-the-shoulder handbag (model B). Cost and revenue data for each shown below: bag that can be worn cross-body Model Al Model B Selling price per unit $80 $100 100 Variable cost per unit $56 $50 The plant that makes these handbags is operating at capacity. The company is currently using all of the available sewing machine hours which is 10,000 hours per month. Model B requires 2 hours of sewing machine time there's more pockets and zippers on this model) while Model A requires 0.8 hours of sewing machine time. Demand is 4,000 and 4,500 units for Model A and Model B repectively. Required: a. Which model should the company focus on given the constraint with machine hours? Use calculations to support your answer. b. The company has determined that a minimum of 2,500 units should be made of each model. Calculate the total number of units of each model to produce. Question 5 - Short answer You are starting a wine company in Kamloops. You need financing from a bank to make the company possible. You are sitting with the loan officer at ABC Bank, Ms. Money Bags. Money asks you a question. "How will the bank know the new company will be a success? That is, what internal financial reporting (managerial accounting) documents/procedures / techniques/policies will your company implement to estimate and monitor your success?" How can you make the bank feel better that they will be repaid? Required: Respond to Money Bags question. Reflect on all the things we covered in this course. A strong answer will: 1. Identify what managerial accounting document/procedure / technique / policy you would use in the business, and 2. How this document/procedure / technique / policy will help manage your business 3. I'm looking for 5 strong points (Hint: I'm not looking for paragraph answers. A couple sentences for each document/procedure / technique/policy you would use in the business is more than enough. Be concise with your answers. I'm looking for you to answer "what you would use and "why" or "how it would help monitor your small business.)