Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat— Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are

The one machine that is used to produce both models has a capacity of 29,400 machineminutes per quarter. Fixed manufacturing costs per quarter are $350,000. 

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?  

Transcribed Image Text:

Price per unit.. Variable cost per unit..... Machine minutes per unit Sport $190 $70 6 Collegiate $375 $137 14