FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to
the required accuracy of the sensor. The Standard model is used for most normal operations while the High-Performance model is
used for high-altitude and specialized missions. Before shipment, the two models are passed through a machine that, among other
things, certifies the accuracy of the sensor. The company only has one testing machine. The price and costs of the two sensor models
are shown here:
Standard
$ 90
$53
0.05
Price per sensor
Variable cost per sensor
Testing hours per sensor
The testing machine used for both models has a capacity of 8,440 hours annually. Fixed manufacturing costs are $3,350,000 annually.
Required:
a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 259,500 units of the Standard model and
99,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually?
b. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 159,500 units of the Standard model and
50,000 of the High-Performance model. How many units of each watch model should Brandon Technology produce annually?
Required A Required B
High-Performance
$ 134
$ 60
0.08
Complete this question by entering your answers in the tabs below.
Standard model
High-Performance model
Suppose that the maximum annual unit sales that is possible for Brandon Technology is 259,500 units of the Standard model
and 99,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce
annually?
units
units
expand button
Transcribed Image Text:Brandon Technology makes two models of a specialized sensor for the aerospace industry. The difference in the two models relates to the required accuracy of the sensor. The Standard model is used for most normal operations while the High-Performance model is used for high-altitude and specialized missions. Before shipment, the two models are passed through a machine that, among other things, certifies the accuracy of the sensor. The company only has one testing machine. The price and costs of the two sensor models are shown here: Standard $ 90 $53 0.05 Price per sensor Variable cost per sensor Testing hours per sensor The testing machine used for both models has a capacity of 8,440 hours annually. Fixed manufacturing costs are $3,350,000 annually. Required: a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 259,500 units of the Standard model and 99,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually? b. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 159,500 units of the Standard model and 50,000 of the High-Performance model. How many units of each watch model should Brandon Technology produce annually? Required A Required B High-Performance $ 134 $ 60 0.08 Complete this question by entering your answers in the tabs below. Standard model High-Performance model Suppose that the maximum annual unit sales that is possible for Brandon Technology is 259,500 units of the Standard model and 99,000 of the High-Performance model. How many units of each sensor model should Brandon Technology produce annually? units units
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