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A ) -A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and

A) -A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and multiple machines. Discuss ways the company can overcome the bottleneck.

B)- Mother Hubbard Company purchases 8,000 units of a part that it needs for production of its product.Notification has just been received from the supplier that a price increase will take effect shortly, which will bring the price of each part to $25.Mother Hubbard Company is considering using some idle facilities to produce the part.The production costs to produce the needed 8,000 parts are as follows:

Direct materials$17,500

Direct labor30,000

Variable factory overhead14,000

Fixed factory overhead33,500

The idle facilities could also be rented out at an annual rent of $99,000.All the factory overhead costs are avoidable.

Required:

Determine if Mother Hubbard Company should continue to buy the part or produce it in-house.

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