Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be

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Question:

Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each function is performed at separate workstations with different completion ratios:

· Exterior construction can manufacture 100,000 juicer exteriors per day.

· Pulp filter insertion can install 25,000 filters every 6 hours.

· Painting can decorate 3,000 juicers every half hour.

· Packaging can package 5,000 juicers per hour.

Required:

a) Determine the maximum amount of JM 50 machines Bryan Inc. can sell per month (assume an average of 30 days per month and 8 hours per day)?

b) What function is the bottleneck?

c) If the contribution margin per juicer is $30.00, would it be worthwhile to spend $5,000,000 to increase the capacity of the bottleneck function by 200,000 units? Show computations.