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, Z) using a small batch process. Each of the products is produced according to the flowchart in Figure 6.14. Additionally, the flowchart indicates each products 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 $16 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions.

Using the traditional method, which bases decisions solely on a products contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?

Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?

What is the Contribution Margin for the Deluxe?

What is the Contribution Margin for the Super Deluxe model?

What is the order of the Product Mix using the Traditional Method?

How many units of Super Duper should be produced using the Traditional Method?

How many units of Deluxe should be produced using the Deluxe method?

What is the revenue for the product mix using the traditional approach?

What is the total cost of materials, labor and overhead using the traditional method?

What is the profit of the product mix derived using the Traditional method?

What is the contribution margin per minute of Deluxe using the bottleneck-based method?

What is the contribution margin per minute of Super Duper using the bottleneck-based approach?

What is the production quantity of Deluxe using the product mix derived from the bottleneck-based approach?

What is the production quantity of Super Duper using the product mix derived from the bottleneck-based approach?

What is the revenue from the product mix derived using the bottleneck method?

What is the total cost of materials, labor and overhead using the product mix derived using the bottleneck-based approach?

What is the profit from the product mix derived from the bottleneck-approach?

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