Fabulous Ice-cream Limited manufactures and distributes ice-creams to various retail outlets in India. The company manufactures a wide variety of flavors and the product mix is determined by giving resource priority to the highest contribution margin ice-cream. The ice-cream manufacturing process is completed in four workstations. Fabulous Ice-cream employs 25 workers; ach worker is paid 100 Indian rupees (INR) per hour and works 40 hours per week. Overhead costs are 12,500 INR per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The plant operates 16 hours per day and 6 days per week. The production manager has identified workstation 1 as the bottleneck. Detailed production information is provided in the table.

a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yields the highest total profit for Fabulous Ice-cream? What is the resulting profit?
b. Using the bottleneck-based method, what is the product mix that yields the highest total profit? What is the resulting profit?

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Price (INR) Material cost (INR) Weekly demand Processing time station 1 Processing time station 2 Processing time station 3 Processing time station 4 Vanilla 1,345 400 100 54 min 0 min 8 min 18 min Strawberry 1,200 550 75 0 min 0 min 54 min 27 min Chocolate 1,895 700 40 27 min 54 min 0 min 36 min