Question: 1. Summarize which product (circle and square) uses how much of each A or B 2. Which is the bottleneck resource? 3.Calculate the contribution margin

1. Summarize which product (circle and square)1. Summarize which product (circle and square) uses how much of each A or B

2. Which is the bottleneck resource?

3.Calculate the contribution margin of each product and the ratio (CM/Time on bottleneck)

4. Calculate the weekly contribution margin and quantity produced for both circles and squares.

Process X at A Circles Purchase X Assemble x with YZ at B for 5 minutes 20 minutes $10 Max demand 100/week Price $100 Process Y at B Purchase Y 10 minutes Squares $20 Assemble z with YZ for A for 5 minutes Max demand 200/week Process Z at A 15 minutes Price $75 Purchase Z $5 Assume 2400 minutes (40 hours/week) of capacity in both resource A and B

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