Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both model 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 $ 195 $72 6 Collegiate $380 $152 15 The one machine that is used to produce both models has a capacity of 29,700 machine-minutes per quarter. Fixed manufacturing costs per quarter are $355,000. 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

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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### Wing Sporting Goods (WSG) Production Analysis

**Background:**
Wing Sporting Goods (WSG) is a small company specializing in the production of metal baseball bats, with two models: Sport and Collegiate. Both models are manufactured on a single machine.

**Model Details:**

|              | Sport | Collegiate |
|--------------|-------|------------|
| Price per unit | $195  | $380       |
| Variable cost per unit | $72   | $152      |
| Machine minutes per unit | 6     | 15         |

- **Machine Capacity:** 29,700 machine-minutes per quarter.
- **Fixed Manufacturing Costs:** $355,000 per quarter.

**Required Analysis:**

**a. 6,000 Units Capacity**
- **Task:** Determine how many units of each model WSG should produce if the maximum sales for each model is 6,000 units per quarter.

**b. 4,200 Units Capacity**
- **Task:** Determine how many units of each model WSG should produce if the maximum sales for each model is 4,200 units per quarter.

**Instructions:**

Complete this exercise by calculating the optimal number of units for each model under the given constraints in scenarios (a) and (b). Use the information provided about production times, costs, and machine capacity to inform your decision.

**Note:** Apply efficient production strategies to maximize profitability while adhering to the machine capacity limitations.

### Graphical and Diagram Analysis:

The image displayed does not contain any graphs or diagrams, but focuses on tabular data and problem-solving tasks related to production management and optimization.
Transcribed Image Text:### Wing Sporting Goods (WSG) Production Analysis **Background:** Wing Sporting Goods (WSG) is a small company specializing in the production of metal baseball bats, with two models: Sport and Collegiate. Both models are manufactured on a single machine. **Model Details:** | | Sport | Collegiate | |--------------|-------|------------| | Price per unit | $195 | $380 | | Variable cost per unit | $72 | $152 | | Machine minutes per unit | 6 | 15 | - **Machine Capacity:** 29,700 machine-minutes per quarter. - **Fixed Manufacturing Costs:** $355,000 per quarter. **Required Analysis:** **a. 6,000 Units Capacity** - **Task:** Determine how many units of each model WSG should produce if the maximum sales for each model is 6,000 units per quarter. **b. 4,200 Units Capacity** - **Task:** Determine how many units of each model WSG should produce if the maximum sales for each model is 4,200 units per quarter. **Instructions:** Complete this exercise by calculating the optimal number of units for each model under the given constraints in scenarios (a) and (b). Use the information provided about production times, costs, and machine capacity to inform your decision. **Note:** Apply efficient production strategies to maximize profitability while adhering to the machine capacity limitations. ### Graphical and Diagram Analysis: The image displayed does not contain any graphs or diagrams, but focuses on tabular data and problem-solving tasks related to production management and optimization.
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