Question
Product mix, constrained resource.Wechsler Company produces three products: A110, B382, and C657. All three products use the same direct material, Voxx. Unit data for the
Product mix, constrained resource.Wechsler Company produces three products: A110, B382, and C657. All three products use the same direct material, Voxx. Unit data for the three products are:
Product | |||
A110 | B382 | C657 | |
Selling price | $168 | $112 | 140 |
Variable costs | |||
Direct materials | 48 | 30 | 18 |
Labor and other costs | 56 | 54 | 80 |
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. Voxx costs $6 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 A110, B382, and C657 should Wechsler produce?
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