Barney toys company manufctures large and small stuffed

Reference no: EM13601087

Barney toys company manufctures large and small stuffed animals. it has a lon-term contract with large chain of discount to sell 3000 large and 6000 each month. The following cost information is available for large and small stuffed animals. Production occurs in batches of 100 large or 200 small stuffed animals. Each batch takes a total of 10 machine hrs to manufacture. The total machine hours capacity of 3000 machine hours be increase for at least a year.

Determine which size is more profitable to produce. How many units of each size Should Barny produce?Because of an unexpected high demand of stuffed dinosaurs, the discount store chain has requested and additional of 5000 large stuffed dinosaurs. It is willing to pay $37 per dinosaurs for this special order ,determine the opportunity cost associated with this order.

Reference no: EM13601087

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