Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mac & nac manufactures two types of women's ha

Mac & Nac manufactures two types of women's handbags: a handbag that can be worn...

60.1K

Verified Solution

Question

Accounting

Mac & Nac manufactures two types of women's handbags: a handbag that can be worn cross- body (model A), and an over-the-shoulder handbag (model B). Cost and revenue data for each model is shown below:
Model A Model B
Selling price per unit $80 $100
Variable cost per unit $56 $50
The plant that makes these handbags is operating at capacity. The company is currently using all of the available sewing machine hours which is 10,000 hours per month. Model B requires 2 hours of sewing machine time (there's more pockets and zippers on this model) while Model A requires 0.8 hours of sewing machine time.
Demand is 4,000 and 4,500 units for Model A and Model B respectively.
Show all your work.
a. Which model should the company focus on given the constraint with machine hours? Use calculations to support your answer.

b. The company has determined that a minimum of 2,500 units should be made of each model. Calculate the total number of units of each model to produce.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The manager of the Hilton Resort Hotel stated that the mean guest bill for a weekend...

Statistics
Q

What are the endocrine diseases expected at PTH: Normal Total Ca: low and what are the confirmation...

Medical Sciences
Q

Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

Accounting
Q

High fructose corn syrup HFCS normally has approximately what composition more than mannose dextrose glucose...

Biology
Q

A block of mass 59.1 kg rests on a slope having an angle of elevation...

Physics
Q

A 35 foot ladder is leaning against the side of a building and is positioned...

Geometry
Q

6 A new car is purchased for 17900 dollars The value of the car depreciates...

Algebra
Q

I just need the schedule 1 done please ...

Accounting
Q

Blossom Farms reports the following results for the month of November: Sales ( 10,800 units)...

Accounting
Q

Sanchez Company has 40,000 shares of 1% preferred stock of $100 par and 104,000 shares...

Accounting
Q

In a strategy meeting, a manufacturing companys president said, If we raise the price of...

Accounting
Q

You have a portfolio with the following: Stock W Number of shares 525, price 43,...

Finance