Spangler Company makes three product that use compound W.

Data concerning products

	VIP	YaX	WiZ
Selling price per unit	$248.04	$230.66	$505.44
Variable cost per unit	$190.71	$172.14	$388.80
Pounds of Compound W per unit	3.90	3.80	8.10

Required:

a. Assume there are no constraints on the amount of Compound W that you can purchase. Rank the order of production given the above information that will maximize profitability assuming you can sell 20,000 units of each product. i.e. Which would you produce first, second, third.

b. You are told that there is a limit to the amounr of Compound W that you can acquire. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the product in the order in which they should be emphasized. Explain your answer.