Question: a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what

a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?
The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers.)
Deluxe: units/week,
Super Duper: units/week.
This product mix yields a profit of:
b. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers.)
Deluxe: units/week,
Super Duper: units/week.
This product mix yields a profit of:
View an Example Question Help demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $20 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $1,800 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. Deluxe $10 Step 2 Step 3 Step 1 Station Z (36 min) Station Y (20 min) Station X (18 min) Product: Deluxe Price: $90/unit Demand: 42 units/wk Raw materials $12 Purchased part Super Duper $6 Step 1 Station X (36 min) Step 2 Station 2 (12 min) Step 3 Station Y (24 min) Product: Super Duper Price: $85/unit Demand: 51 units/wk Raw materials $7 Drahornd nart Question is complete. All parts showing CloseStep by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
