Question: A J s Wildlife Emporium manufactures two unique bird feeders De

A.J’s Wildlife Emporium manufactures two unique bird feeders (Deluxe and Super Duper) that are manufacture and assembled in up to three different workstations (X, Y, Z) using a small batch process. Each of the products is produced according to the flowchart in Figure.

Additionally, the flowchart indicates each product’s price, weekly demand, and processing times per unit. Batch setup times are negligible, A.J can make anti sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each work- station is staffed by a worker who is dedicated to work on that workstation alone and is paid $16 per hour. The plant operates 40 hours per week, with no overtime overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions.
a. Using the traditional method, which bases decisions solely on a product’s contribution to profits and over- head, what is the optimal product mix?
b. What is the overall profitability of the product mix found in parta?
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  • CreatedJanuary 24, 2013
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