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Question 3 Mac & Nac manufactures two types of women's handbags: a handbag that can be worn crossbody (model A), and an over-the-shoulder handbag (model
Question 3 Mac & Nac manufactures two types of women's handbags: a handbag that can be worn crossbody (model A), and an over-the-shoulder handbag (model B). Cost and revenue data for each model is shown below: Selling price per unit Variable cost per unit Model A Model B $80 $100 $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 respectively. 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
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