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: Price per sensor Standard $ 56 $36 0.04 Variable cost per sensor Testing hours per sensor The testing machine used for both models has a capacity of 8,270 hours annually. Fixed manufacturing costs are $2,500,000 annually. Required: a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model and 87,700 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 is possible for Brandon Technology is 151,000 units of the Standard model and 50,000 of the High-Performance model. How many units of each watch model should Brandon Technology produce annually? Complete this question by entering your answers in the tabs below. Required A Required B High-Performance. $ 100 $ 43 0.10 Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model. and 87,700 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually? Standard model High-Performance model 10,040 units 8,770 units
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: Price per sensor Standard $ 56 $36 0.04 Variable cost per sensor Testing hours per sensor The testing machine used for both models has a capacity of 8,270 hours annually. Fixed manufacturing costs are $2,500,000 annually. Required: a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model and 87,700 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 is possible for Brandon Technology is 151,000 units of the Standard model and 50,000 of the High-Performance model. How many units of each watch model should Brandon Technology produce annually? Complete this question by entering your answers in the tabs below. Required A Required B High-Performance. $ 100 $ 43 0.10 Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model. and 87,700 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually? Standard model High-Performance model 10,040 units 8,770 units
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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:
Standard
$ 56
Price per sensor
Variable cost per sensor
Testing hours per sensor
$36
0.04
The testing machine used for both models has a capacity of 8,270 hours annually. Fixed manufacturing costs are $2,500,000 annually.
Required:
a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model and
87,700 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 is possible for Brandon Technology is 151,000 units of the Standard model and
50,000 of the High-Performance model. How many units of each watch model should Brandon Technology produce annually?
Complete this question by entering your answers in the tabs below.
Required A Required B
High-Performance
$ 100
$ 43
0.10
Suppose that the maximum annual unit sales that is possible for Brandon Technology is 251,000 units of the Standard model
and 87,700 of the High-Performance model. How many units of each sensor model should Brandon Technology produce
annually?
Standard model
High-Performance model
10,040 units
8,770 units
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