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 Sport Collegiate Price per unit $ 285 $ 470 Variable cost per unit $ 108 $ 188 Machine minutes per unit 6 15 The one machine that is used to produce both models has a capacity of 35,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $445,000. 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
|
Sport |
Collegiate |
Price per unit |
$ 285 |
$ 470 |
Variable cost per unit |
$ 108 |
$ 188 |
Machine minutes per unit |
6 |
15 |
The one machine that is used to produce both models has a capacity of 35,100 machine-minutes per quarter. Fixed
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?

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