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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:
| 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 |
| Direct materials | $ 72 | $ 45 | $ 27 |
| Labor and overhead | $ 84 | $ 81 | $ 120 |
| lbs of Brak per unit | 8 | 5 | 3 |
| 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. |
Requirements: Calculate how many units of each product will Wechsler produce each month?
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
