Penny Company produces three products: A100, B300, and C500. All three products use the same direct material, Zinc. Unit data for the three products is as follows:

	A100	B300	C500
Selling Price	$248	$155	$212
Variable Costs
Direct Materials	$66	$39	$25
Labour and other costs	$76	$82	$116
Quantity of Zinc	10 lb.	4 lb.	4 lb.

The demand for the products far exceeds the direct materials available to produce the products. Zinc costs $7 per pound, and a maximum of 5,400 pounds is available each month. Penny must produce a minimum of 210 units of each product.

Required

1. How many units of product A100, B300, and C500 should Penny produce? Provide full support for your calculation.

2. What is the maximum amount Penny Company would be willing to pay for another 1,260 pounds of Zinc?