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can you answer c,d,e Section B: Answer Three questions from 4. All questions carry equal marks Question 2 Wechsler Company produces three products: A130, B324,
can you answer c,d,e
Section B: Answer Three questions from 4. All questions carry equal marks Question 2 Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data for the three products are: A130 S252 Product B324 $168 C587 S210 Selling price Variable costs Direct materials Labor and other costs Quantity of Brac per unit S 72 S 84 8 lb. S 45 $ 81 5 lb. $ 27 $120 3 lb. The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product. Required: a. How many units of product A130, B324, and C587 should Wechsler produce using contribution margin per limiting factor? (11 Marks) b. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac? (5 Marks) c. If Wechsler operates in a throughput accounting environment, calculate the throughput contribution for product A 130. (2 Marks) d. Managers should always buy inventory in quantities that result in the lowest purchase cost per unit." Do you agree? Why? (4 Marks) e. List the three steps in solving a linear programmingStep by Step Solution
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