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 $ 190 $ 375
Variable cost per unit $ 70 $ 137
Machine minutes per unit 6 14
The one machine that is used to produce both models has a capacity of 29,400 machine-minutes per quarter. Fixed manufacturing costs per quarter are $350,000.
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?