# Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the

## Question:

Brandon Technology makes two models of a specialized sensor for the aerospace industry. The  difference in the two models relates to the required accuracy of the sensor. The Standard model is used for most normal operations while the High-Performance model is used for highaltitude and specialized missions. Before shipment, the two models are passed through a machine that, among other things, certifies the accuracy of the sensor. The company only has one testing machine. The price and costs of the two sensor models are shown here:

The testing machine used for both models has a capacity of 8,250 hours annually. Fixed manufacturing costs are \$2,400,000 annually.

Required

a. Suppose that the maximum annual unit sales that are possible for Brandon Technology are 250,000 units of the Standard model and 80,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually?

b. Suppose that the maximum annual unit sales that are possible for Brandon Technology are 150,000 units of the Standard model and 50,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually?

Fantastic news! We've Found the answer you've been seeking!