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 x Y Z Selling price $252 $168 $210 Variable costs Direct materials $72 $45 $27 Labour and other costs $84 $81 $120 Quantity of direct materials per unit 8 lb 5 lb 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? (11 marks) 2. Regardless of your answer to (1) above, what is the maximum amount XYZ Corporation would be willing to pay per lb for another 1,200 pounds of the direct material on the assumption that it will be used for producing product Z? (4 marks)