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Christine's Chronographs makes two models of a high-end watch-the 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 $4,300 $2,200 2 Model 101 $10,500 $ 6,600 3 The polishing machine used for both models has a capacity of 48,000 hours annually. Fixed manufacturing costs are $8,200,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 18,000 units of the Model 94 and 17,000 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 16,000 units of the Model 94 and 13,000 of the Model 101. How many units of each watch model should Christine's produce annually?

Christine's Chronographs makes two models of a high-end watch-the 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 $4,300 $2,200 2 Model 101 $10,500 $ 6,600 3 The polishing machine used for both models has a capacity of 48,000 hours annually. Fixed manufacturing costs are $8,200,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 18,000 units of the Model 94 and 17,000 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 16,000 units of the Model 94 and 13,000 of the Model 101. How many units of each watch model should Christine's produce annually?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 16E
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Christine's Chronographs makes two models of a high-end watch-the 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 The polishing machine used for both models has a capacity of 48,000 hours annually. Fixed manufacturing costs are $8,200,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 18,000 units of the Model 94 and 17,000 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 16,000 units of the Model 94 and 13,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 $4,300 $10,500 $ 6,600 $2,200 2 3 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 18,000 units of the Model 94 and 17,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 units units Required A < Prev RequiredIB Σ 8 of 14 T Next > wit
Transcribed Image Text:Christine's Chronographs makes two models of a high-end watch-the 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 The polishing machine used for both models has a capacity of 48,000 hours annually. Fixed manufacturing costs are $8,200,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 18,000 units of the Model 94 and 17,000 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 16,000 units of the Model 94 and 13,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 $4,300 $10,500 $ 6,600 $2,200 2 3 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 18,000 units of the Model 94 and 17,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 units units Required A < Prev RequiredIB Σ 8 of 14 T Next > wit
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