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XYZ Corporation produces three products, X, Y and Z. All three products use the same direct material. Unit data relating to the products are as
XYZ Corporation produces three products, X, Y and Z. All three products use the same direct material. Unit data relating to the products are as follows: Product Y $168 Z $210 Selling price $252 Variable costs Direct materials $72 Labour and other costs $84 Quantity of direct materials per unit 8 lb $45 $81 5 lb $27 $120 3 lb The demand for the products far exceeds the direct materials available to produce the products. The direct material costs $9 per pound, and a maximum of 5,000 pounds is available each month. XYZ Corporation must produce a minimum of 200 units of each product. Required: 1. How many units of products X, Y and Z should XYZ Corporation produce to maximize income
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