Product mix, constrained resource Westford Company produces three products, A110, B382 and D657. Unit data for the three products follows:

All three products use the same direct material, Bistide. The demand for the products far exceeds the direct materials available to produce the products. Bistide costs $3 per pound and a maximum of 5,000 pounds is available each month. Westford must produce a minimum of 200 units of each product.

1. How many units of product A110, B382, and C657 should Westford produce?

2. What is the maximum amount Westford would be willing to pay for another 1,000 pounds ofBistide?

Transcribed Image Text:

Product A110 S84 B382 C657 70 Selling price Variable costs Direct materials Labor and other costs $56 24 28 15 27 40