Christine's Chronographs makes two models of a high-end watchthe model 94 and the model 101....

50.1K

Verified Solution

Question

Finance

Christine's Chronographs makes two models of a high-end watchthe model 94 and the model 101. Both models go through a special polishing step that requires the use of the single polishing machine at the company. The price and costs of the two models appear as follows.

Model 94 Model 101
Price per watch $ 5,100 $ 9,500
Variable cost per watch $ 2,600 $ 5,600
Polishing hours per watch 2 3

The polishing machine used for both models has a capacity of 30,000 hours annually. Fixed manufacturing costs are $7,700,000 annually.

Required:

a. Suppose that the maximum annual unit sales that Christine's can achieve is 13,000 units of the Model 94 and 11,000 of the Model 101. How many units of each watch model should Christine's produce annually?

b. Suppose that the maximum annual unit sales that Christine's achieve make is 11,000 units of the Model 94 and 8,000 of the Model 101. How many units of each watch model should Christine's produce annually?

image

Christine's Chronographs makes two models of a high-end watchthe model 94 and the model 101. Both models go through a special polishing step that requires the use of the single polishing machine at the company. The price and costs of the two models appear as follows. Price per watch Variable cost per watch Polishing hours per watch Model 94 $ 5,109 $ 2,600 2 Model 101 $ 9,500 $ 5,600 3 The polishing machine used for both models has a capacity of 30,000 hours annually. Fixed manufacturing costs are $7,700,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 13,000 units of the Model 94 and 11,000 of the Model 101. How many units of each watch model should Christine's produce annually? b. Suppose that the maximum annual unit sales that Christine's achieve make is 11,000 units of the Model 94 and 8,000 of the Model 101. How many units of each watch model should Christine's produce annually? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that the maximum annual unit sales that Christine's can achieve is 13,000 units of the Model 94 and 11,000 of the Model 101. How many units of each watch model should Christine's produce annually? units Model 94 Model 101 units

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students