$(1\mathrm{.}0+5),477.$ Theory of Costruints

Playfal Pens. Inc., makes a single modet of a pen. The cartridge for the pen $($which contains the ink$)$ is mansfoctured on one machine. The cartridge holder $($which you hold when you bold the pen$)$ is manufactured on another machine. Monthly capacities and production levels are as follows:

The compasy could self $1,000,000$ pers per mosth. The units $($curridge inside of holder$)$ sell for $$10$ each and have a variable cost of $$4$ each. Fixed costs are $$4,000,000$ per month.

Reyuirnd

a$.$ Is thereti botteneck at Playful Pens? If so$,$ where is it$?$

$4.$ Playful Pens'y production supervisons stafe they could increase machine $25$ cupacity by $200,000$ per month by producing boldes on the wakend. Producing on the weekend would not uffect the sales price. Viriable cost per unit would increase by $51$ for those produced on the acekend because of the presium paid to lahor. Fixed costs would also incease by $$800,000$ per mooth. Sbould Playful Pens prodoce holders on the weckend? of machine $2$ by adding udditional workers to perform ongoing maintenases. This would nerease its eapacity by $100,000$ holders per month. This would bot affect sales price or fixed costs, but would iscrease variable cost to $$4\mathrm{.}50$ per unit for all units produced Should Playful Peas expand machine $2\text{'}$s capability by addine these additional morkers?