I was able to get the answer to part a already with help, but I forgot about par

Question

I was able to get the answer to part a already with help, but I forgot about part B. So it is mostly done already. here is the data and table at the end already done. Green is correct. red is what i got wrong.

I need to solve part B opportunity cost

Problem 4-17 (Part Level Submission) Fleet Valley Shoes produces two models:the Nx100 (a shoe aimed at competitive runners) and the Mx100 (a shoe aimed at fitness buffs). Sales and costs for the most recent year are indicated: Nx100 Mx100 79,400 $2,955,000 $8,827,000 Sales (pairs) Sales Variable costs Contribution margin Fixed costs Profit Assembly time per pair Profit per assembly hour CM per assembly hour 20,900 (746,200 (1,192,000) 2,208,800 7,635,000 (20,100) (1,460,000) $2,188,700 3 hours $34.91 $35.23 $6,175,000 2 hours $38.89 $48.08 (a) Your answer is correct Suppose the company has 197,000 assembly hours available. Further, management believes that at least 3,700 pairs of each model must be produced so that the company has a presence in both market segments. How many pairs of each model should be produced in the coming year? Nx100 Mx100 Number of pairs to be produced 3700 92950

Explanation / Answer

For 5850 pairs Units Revenue Total contibution Total assembly hours available 197000 Lesss:Assembly hours req N100 5850*3 17550 5850 35.23 206095.5 M100 5850*2 11700 5850 48.08 281268 Balance Assembly hours 167750 M1oo no of extra units produced 83875 83875 48.08 4032710 Total 4520073.5 for 3700 pairs Units Revenue Total contibution N100 3700 35.23 130351 M100 3700 48.08 177896 M100 89250 48.08 4291140 Total 4599387 Opportunity cost= Return of most lucrative option-Return on chosen option 4599387-4520073.5 79313.5 Ans

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