Zwinger Nursery plans to sell a similar fertilizer/weedkiller compound through its regional nursery chain under its own Zwinger does not have manufacturing facilities of its own, so it has asked Wesco (and several ot manufacturing and delivering a 31,000-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 smitler label her companies) to submit a bid for The Zwinger compound would be produced in 1,000-pound lots. Each lot would require 37 direct labor-hours and the following chemicals Chemicals AG-5 CW-7 310 300 100 290 DF-6 The first 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 $012 per pound selling and handling expenses Wesco also has on han which cannot be used in GrowNWeed, can be substituted for compound. The BH-3 in inventory has a salvage value of $540 d a chemical called BH-3, which was manufactured for use in another product that is no longer produced AG-5 on a one-for one basis without affecting the quality of the Zwinger Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Actual Price Current per Pound When Pounds in Material Inventory Purchased Price per Pound Raw 22,000 5,100 8, 500 7,690 5,800 s 0.75 s 0.48 1.33 s0.56 s 0.71 AG-5 KL-2 s 0.53 s 1.53 s 0.58 BH-3 Zwinger Nursery plans to sell a similar fertilizer/weedkiller compound through its regional nursery chain under its own Zwinger does not have manufacturing facilities of its own, so it has asked Wesco (and several ot manufacturing and delivering a 31,000-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 smitler label her companies) to submit a bid for The Zwinger compound would be produced in 1,000-pound lots. Each lot would require 37 direct labor-hours and the following chemicals Chemicals AG-5 CW-7 310 300 100 290 DF-6 The first 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 $012 per pound selling and handling expenses Wesco also has on han which cannot be used in GrowNWeed, can be substituted for compound. The BH-3 in inventory has a salvage value of $540 d a chemical called BH-3, which was manufactured for use in another product that is no longer produced AG-5 on a one-for one basis without affecting the quality of the Zwinger Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below Actual Price Current per Pound When Pounds in Material Inventory Purchased Price per Pound Raw 22,000 5,100 8, 500 7,690 5,800 s 0.75 s 0.48 1.33 s0.56 s 0.71 AG-5 KL-2 s 0.53 s 1.53 s 0.58 BH-3
