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Problem 11-26 Product mix, constrained resource.Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data
Problem 11-26 Product mix, constrained resource.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:
Product | |||
A130 | B324 | C587 | |
Selling price | $252 | $168 | 210 |
Variable costs | |||
Direct materials | 72 | 45 | 27 |
Labor and other costs | 84 | 81 | 120 |
Quantity of Voxx per unit | 8 lb. | 5 lb. | 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.
- 1.How many units of product A130, B324, and C587 should Wechsler produce?
- 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?
Please respond in excel copyable format with calculation workings being shown.
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