Westford Company produces three products, A110, B382, and C657. Unit data for the three products follow:

All three products use the same direct material, Bistide. The demand for the products far exceeds the direct material available to produce the products. Bistide costs $3 per kilo gram and a maximum of 5,000 kilograms is available each month. Westford must produce a mini-mum of 200 units of each product.
REQUIRED
1. How many units of product A110, B382, and C657 should Westford produce?
2. What is the maximum amount Westford would be willing to pay for another 1,000 kilograms of Bistide?

Transcribed Image Text:

Product B382 S56 15 A110 C657 Selling price Variable costs S84 S70 Direct materials Other variable costs 24 28 27 40