Pappy's Toys makes two models of a metal toyStandard and DeLuxe. Both models are produced...
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Pappy's Toys makes two models of a metal toyStandard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows. Standard DeLuxe Price per unit $ 40 $ 60 Variable cost per unit $ 20 $ 24 Machine hours per unit 0.5 1.5 The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $800,000. Required: a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of each model should Pappy's produce in a quarter? b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter?
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