Wesco Incorporated's only product is a combination fertilizer/weedkiller called GrowNWeed. GrowNWeed is sold nauonwide to retal nurseries and garden stores Zwinger Nursery plans to sell a similar rt ursery chain under its o n 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 28,000-pound order of the privete brand compound to Zwinger. While the chemical composition of the Zwinger compound differs from that of GrowNWeed, the manufacturing processes are very similar zer/weedkiller riopedT The Zwinger compound would be produced in 1,000-pound lots. Each lot would require 34 direct labor-hours and the following ??? AG-5 KL-2 ?-1 DP-6 Pounds 370 260 110 260 erences The frst three chemicals (AG-5, KL-2, and CW-7 are all used in the production of GrowNWeed. DF-6 was used in another compound that Wesco discontinued several months ago. The supply of DF-6 that Wesco had on hand when the other compound was discontinued was not discarded. Wesco could sell its supply of DF-6 at the prevailing market price less $O.08 per pound selling and handiling expenses Wesco also has on hand a chemical called BH-3, which was manufactured for use in another product that is no longer produced. 8H3, which cannot be used in GrowNWeed, can be substituted for AG-5 on a one-for-one basis without affecting the quality of the Zwinger compound. The BH-3 in inventory has a salvage value of $540 inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Actual PriceCurrent per Pound