Chapter 11: Decision Making Part 4: Glover Company makes three products in a single facility. Data concerning the three products follow (per unit): Product A B C Selling price $ 180 $ 270 $ 240 Variable expenses: Direct materials 24 80 32 Other variable expenses 102 90 148 Total variable expenses $ 126 $ 170 $ 180 The company estimates that it can sell 500 units of each product per month. The same raw material is used in each product. The material cost is $8 per pound with a maximum of 6,000 pounds available each month. Required: How many pounds of raw materials would be required to satisfy demand for all three products? 2. How many units of each product should be produced to maximize net operating income? 3. Up to how much should the company be willing to pay for one additional pound of raw material if they could line up another supplier?