Question: b. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? According to the bottleneck method, select the best

b. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?
According to the bottleneck method, select the best product mix according to the dollar contribution margin per minute of processing time at the bottleneck workstation. Calculate the contribution margin per minute of processing time at the bottleneck Station X. Start with the time required per unit at the bottleneck and then find the ratio. (Enter your responses rounded to one decimal place.)
Now that the product mix is obtained, compute its profitability. (Enter your responses as whole numbers.)
G = Homework: Homework 6 Save A.J.'s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, and Z) using a small batch process. Each of the products is produced according to the flowchart below. Additionally, the flowchart indicates each product's price, weekly demand, and processing times per unit. Batch setup times are negligible. A.J. can make and 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 workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $18 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. O 0 5 Deluxe $9 Step 1 Station Z (24 min) Step 2 Station Y (11 min) Step 3 Product: Deluxe Station X - Price: $67/unit (14 min) Demand: 58 units/wk Raw materials $12 Purchased part Super Duper $5 Step 1 Station X (24 min) Step 2 Station Z (12 min) Step 3 Station Y (19 min) Product: Super Duper Price: $64/unit Demand: 76 units/wk Raw materials S5/ Purchased part 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. Help me solve this View an example Get more help Clear all Check
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
