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

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Accounting

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.

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?

model 94 ?___________ units

model 101 ? __________ units

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?

model 94 ? _________units

model 101 ? __________ units

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