08 Jun Question Product mix, constrained resource
Question
Product mix, constrained resource. 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:
Product
A110
B382
C657
Selling price
$168
$112
140
Variable costs
Direct materials
48
30
18
Labor and other costs
56
54
80
Quantity of Voxx per unit
8 lb.
5 lb.
3 lb.
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.
1.How many units of product A110, B382, and C657 should Wechsler produce?
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