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The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 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 A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?

The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 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 A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The demand for the products far exceeds the direct materials available to produce the products. Brac costs $9 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 A130, B324, and C587 should Wechsler produce?

2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac?

11-42 Product mix, constrained resource. Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data for the three products are: Product A130 B324 C587 Selling price $252 $168 $210 Variable costs $ 72 $ 84 $ 27 $ 45 $ 81 Direct materials Labor and other costs $120 Quantity of Brac per unit 8 lb. 5 lb. 3 lb.
Transcribed Image Text:11-42 Product mix, constrained resource. Wechsler Company produces three products: A130, B324, and C587. All three products use the same direct material, Brac. Unit data for the three products are: Product A130 B324 C587 Selling price $252 $168 $210 Variable costs $ 72 $ 84 $ 27 $ 45 $ 81 Direct materials Labor and other costs $120 Quantity of Brac per unit 8 lb. 5 lb. 3 lb.
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