Question
Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball batSport and Collegiate. Both models are produced on a
Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball batSport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are
| Sport | Collegiate | |
|---|---|---|
| Price per unit | $ 235 | $ 420 |
| Variable cost per unit | $ 88 | $ 168 |
| Machine minutes per unit | 6 | 15 |
The one machine that is used to produce both models has a capacity of 32,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $395,000.
Required:
a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter?
b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Unofficial Guide To Medical Research Audit And Teaching
Authors: Ceen-Ming Tang BA BM BCh MRCGP, Colin Fischbacher, Zeshan Qureshi BM BSc MSc MRCPCH FAcadMEd MRCPS
1st Edition
0957149980, 978-0957149984
