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Wesco Incorporated's only product is a combination fertilizer / weedkiller called GrowNWeed. GrowNWeed is sold nationwide to retail nurseries and garden stores. Zwinger Nursery plans
Wesco Incorporated's only product is a combination fertilizerweedkiller called GrowNWeed. GrowNWeed is sold nationwide to retail nurseries and garden stores. Zwinger Nursery plans to sell a similar fertilizerweedkiller compound through its regional nursery chain under its own private label. Zwinger does not have manufacturing facilities of its own, so it has asked Wesco and several other companies to submit a bid for manufacturing and delivering a pound order of the private brand compound to Zwinger. While the chemical composition of the Zwinger compound differs from that of GrowNWeed, the manufacturing processes are very similar. The Zwinger compound would be produced in pound lots. Each lot would require direct laborhours and the following chemicals: The first three chemicals AG KL and CW are all used in the production of GrowNWeed. DF was used in another compound that Wesco discontinued several months ago. The supply of DF that Wesco had on hand when the other compound was discontinued was not discarded. Wesco could sell its supply of DF at the prevailing market price less $ per pound selling and handling expenses. Wesco also has on hand a chemical called which was manufactured for use in another product that is no longer produced. which cannot be used in GrowNWeed, can be substituted for AG on a oneforone basis without affecting the quality of the Zwinger compound. The BH in inventory has a salvage value of $ Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below:
Wesco Incorporated's only product is a combination fertilizerweedkiller called GrowNWeed. GrowNWeed is sold nationwide to retail
nurseries and garden stores.
Zwinger Nursery plans to sell a similar fertilizerweedkiller compound through its regional nursery chain under its own private label.
Zwinger does not have manufacturing facilities of its own, so it has asked Wesco and several other companies to submit a bid for
manufacturing and delivering a pound order of the private brand compound to Zwinger. While the chemical composition of the
Zwinger compound differs from that of GrowNWeed, the manufacturing processes are very similar.
The Zwinger compound would be produced in pound lots. Each lot would require direct laborhours and the following
chemicals:
The first three chemicals AG KL and CW are all used in the production of GrowNWeed. DF was used in another compound
that Wesco discontinued several months ago. The supply of DF that Wesco had on hand when the other compound was
discontinued was not discarded. Wesco could sell its supply of DF at the prevailing market price less $ per pound selling and
handling expenses.
Wesco also has on hand a chemical called which was manufactured for use in another product that is no longer produced.
which cannot be used in GrowNWeed, can be substituted for AG on a oneforone basis without affecting the quality of the Zwinger
compound. The BH in inventory has a salvage value of $
Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below:
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