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 Price per sensor Variable cost per sensor Testing hours per sensor $ 52 $ 34 0.04 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 is possible for Brandon Technology is 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 is possible for Brandon Technology is 150,000 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 Suppose that the maximum annual unit sales that is possible for Brandon Technology is 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? Standard model High-Performance $ 96 $ 41 0.11 High-Performance model units 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: Standard Price per sensor Variable cost per sensor Testing hours per sensor $ 52 $ 34 0.04 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 is possible for Brandon Technology is 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 is possible for Brandon Technology is 150,000 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 Suppose that the maximum annual unit sales that is possible for Brandon Technology is 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? Standard model High-Performance $ 96 $ 41 0.11 High-Performance model units units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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:
Price per sensor
Standard
$ 52
$ 34
0.04
Variable cost per sensor
Testing hours per sensor
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 is possible for Brandon Technology is 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 is possible for Brandon Technology is 150,000 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.
High-Performance
$ 96
$ 41
0.11
Required A Required B
Suppose that the maximum annual unit sales that is possible for Brandon Technology is 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?
Standard model
High-Performance model
units
units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education