Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3 comma 800 units of Prime and 1 comma 800 units of Luxuria in 2020. The following estimates are given for 2020: Prime Luxuria Selling price $200 $500 Direct materials 20 100 Direct labor 70 180 Manufacturing overhead 40 150 Nantucket had an inventory of 240 units of Prime and 85 units of Luxuria at the end of 2019. It has decided that as a measure to counter stock outages it will maintain ending inventory of 360 units of Prime and 210 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $11. There were 100 units of Crimpson in stock at the end of 2019. The management does not want to have any stock of Crimpson at the end of 2020. How many units of Prime watches must be produced in 2020?
Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3 comma 800 units of Prime and 1 comma 800 units of Luxuria in 2020. The following estimates are given for 2020: Prime Luxuria Selling price $200 $500 Direct materials 20 100 Direct labor 70 180 Manufacturing overhead 40 150 Nantucket had an inventory of 240 units of Prime and 85 units of Luxuria at the end of 2019. It has decided that as a measure to counter stock outages it will maintain ending inventory of 360 units of Prime and 210 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $11. There were 100 units of Crimpson in stock at the end of 2019. The management does not want to have any stock of Crimpson at the end of 2020. How many units of Prime watches must be produced in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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