Wechsler Company produces three products: A110, B382, and C657. All three products use the same direct material, Voxx. Unit data for the three products are:

The demand for the products far exceeds the direct materials available to produce the products. Voxx costs $ 6 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product.

Required
1. How many units of product A110, B382, and C657 should Wechsler produce?
2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Voxx?

Transcribed Image Text:

Product B382 $112 30 54 A110 $168 C657 Selling price Variable costs 140 Direct materials Labor and other costs 48 56 8 lb 18 80 Quantity of Voxx per unit 5 lb 3 lb