Question
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
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:
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.
| 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 Brac per unit (lb) | 8.00 | 5.00 | 3.00 |
How many units of product A130, B324, and C587 should Wechsler produce?
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