The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter.  Fixed manufacturing costs per quarter are $800,000. a. Suppose that the maximum unit sales in a quarter that Pappy;s can acheive is 200,000 unit of each product. how many units of each model should Pappy's produce in a quarter? b. Supposed that the maximum unit sales in a quarter that Pappy's can acheive is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter.  Fixed manufacturing costs per quarter are $800,000.

a. Suppose that the maximum unit sales in a quarter that Pappy;s can acheive is 200,000 unit of each product. how many units of each model should Pappy's produce in a quarter?

b. Supposed that the maximum unit sales in a quarter that Pappy's can acheive is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter?

Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and
costs of the two models appear as follows.
Price per unit
Variable cost per unit
Machine hours per unit
Standard DeLuxe
$ 40
$ 20
0.5
$ 60
$ 24
1.5
The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs
per quarter are $800,000.
Required:
a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of
each model should Pappy's produce in a quarter?
b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of
each model should Pappy's produce in a quarter?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units
of each model should Pappy's produce in a quarter?
Standard Model
units
DeLuxe Model
units
Transcribed Image Text:Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows. Price per unit Variable cost per unit Machine hours per unit Standard DeLuxe $ 40 $ 20 0.5 $ 60 $ 24 1.5 The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $800,000. Required: a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of each model should Pappy's produce in a quarter? b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter? Standard Model units DeLuxe Model units
Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and
costs of the two models appear as follows.
Price per unit
Variable cost per unit
Machine hours per unit
Standard DeLuxe
$ 60
$ 24
1.5
$40
$ 20
0.5
The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs
per quarter are $800,000.
Required:
a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of
each model should Pappy's produce in a quarter?
b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of
each model should Pappy's produce in a quarter?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units
of each model should Pappy's produce in a quarter?
Standard Model
units
DeLuxe Model
units
Transcribed Image Text:Pappy's Toys makes two models of a metal toy-Standard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows. Price per unit Variable cost per unit Machine hours per unit Standard DeLuxe $ 60 $ 24 1.5 $40 $ 20 0.5 The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $800,000. Required: a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of each model should Pappy's produce in a quarter? b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of each model should Pappy's produce in a quarter? Standard Model units DeLuxe Model units
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