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$9 Step 1 ws Z (30 min) Workstation. Step 2 ws Y (15 min) Workstation Raw Materials Step 3 ws X (15 min) Workstation
$9 Step 1 ws Z (30 min) Workstation. Step 2 ws Y (15 min) Workstation Raw Materials Step 3 ws X (15 min) Workstation Deluxe Prc:581/un Dmd.: 50 un/w $6 Purchased part Super Duper Step 1 ws X (30 min) Workstation Step 2 ws Z (10 min) Workstation Step 3 ws Y (20 min) Workstation Super Duper Prc.:$80/u. $4 Raw Materials Dmd.: 60 u./w $69 Purchased part Miracle Company manufactures two special competers (Delux and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, Z) using a small batch process. Production process is given above. The company can make and sell up to the limit of its weekly demand. Each workstation is staffed by a worker who is dedicated to work on that workstation by a worker alone and is paid $16 per hour. The plant operates 40 hours per week with no overtime. Overhead costs are $2,000 per week. a. Using the traditional method which bases decisions solely on a product's contribution to profits and overhead what is the optimal product mix? b. What is the overall profitability of the product mix found in part (a) c. Using the bottleneck -based method what is the optimal product mix. d. What is the overall profitability of the product mix found in part (c) Make your calculations on the following table) Minutes Left after Can only make Work Center Minutes at the Start Making Station X Station Y Station Z
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