Question
Westford Company produces three products, A1, B3, and C6. Unit data for the three products follows: Product A1 B3 C6 Selling price $84 $56 70
Westford Company produces three products, A1, B3, and C6. Unit data for the three products follows:
Product A1 B3 C6 Selling price $84 $56 70 Variable costs: Direct materials 24 15 9 Labor and other costs 28 27 40 Quantity of BT per unit 8 lb. 5 lb. 3 lb.
All three products use the same direct material, BT. The demand for the products far exceeds the direct materials available to produce the products. BT costs $3 per pound and a maximum of 5,000 pounds is available each month. Westford must produce a minimum of 200 units of each product. Required: How many units of product A1, B3, and C6 should Westford produce?
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