Pappy?s Toys makes two models of a metal toy?Standard and DeLuxe. Both models are produced on a
Question:
Pappy?s Toys makes two models of a metal toy?Standard and DeLuxe.
Both models are produced on a single machine. The price and costs of the two models appear as follows.
The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $800,000.
Requireda. Suppose that the maximum unit sales in a quarter that Pappy?s can achieve is 200,000 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 120,000 units of each product. How many units of each model should Pappy?s produce in a quarter?
Step by Step Answer:
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher