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 Price per unit Variable cost per unit Machine minutes per unit Sport $ 240 $ 90 6 Collegiate $ 425 $ 170 15 The one machine that is used to produce both models has a capacity of 32,400 machine-minutes per quarter. Fixed manufacturing costs per quarter are $400,000. 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?
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 Price per unit Variable cost per unit Machine minutes per unit Sport $ 240 $ 90 6 Collegiate $ 425 $ 170 15 The one machine that is used to produce both models has a capacity of 32,400 machine-minutes per quarter. Fixed manufacturing costs per quarter are $400,000. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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