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Pappy's Toys makes two models of a metal toy—Standard and DeLuxe. Both models are produced on...

Pappy's Toys makes two models of a metal toy—Standard 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   $   65      $   85     
Variable cost per unit   $   30      $   34     
Machine hours per unit      0.5         1.5     

The one machine that used to produce both models has a capacity of 95,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $825,000.

Required:

a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 210,000 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 122,500 units of each product. How many units of each model should Pappy's produce in a quarter?

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