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 Price per unit Variable cost per unit Machine minutes per unit Sport $265 $100 6 Collegiate $ 450 $ 180 15 The one machine that is used to produce both models has a capacity of 33,900 machine-minutes per quarter. Fixed manufacturing costs per quarter are $425,000. 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?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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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
Price per unit
Variable cost per unit
Machine minutes per unit
Sport
$265
$100
6
Collegiate
$450
$180
15
The one machine that is used to produce both models has a capacity of 33,900 machine-minutes per quarter. Fixed
manufacturing costs per quarter are $425,000.
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?
Transcribed Image Text: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 Price per unit Variable cost per unit Machine minutes per unit Sport $265 $100 6 Collegiate $450 $180 15 The one machine that is used to produce both models has a capacity of 33,900 machine-minutes per quarter. Fixed manufacturing costs per quarter are $425,000. 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?
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