Christine?s Chronographs makes two models of a high-end watch?the model 94 and the model 101. Both models go through a special polishing step that requires the use of the single polishing machine at the company.The price and costs of the two models appear as follows.

The polishing machine used for both models has a capacity of 12,000 hours annually. Fixed manufacturing costs are $7,200,000 annually.

Requireda. Suppose that the maximum annual unit sales that Christine?s can achieve is 8,000 units of the Model 94 and 5,000 of the Model 101. How many units of each watch model should Christine?s produceannually?b. Suppose that the maximum annual unit sales that Christine?s achieve make is 6,000 units of the Model 94 and 3,000 of the Model 101. How many units of each watch model should Christine?s produce annually?

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Model 101 Model 94 Price per watch Variable cost per watch Machine hours per unit $4,500 $8,500 $2,300 $4,600 2 3