Question
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
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
$2,700
per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions.
$14$5$9$7Step 1Step 1Station ZStation XStep 2Step 2Station ZStation YDeluxeSuper DuperRaw materialsRaw materials(22 min)(22 min)(9 min)(13 min)Purchased partPurchased part
In the diagram, a flowchart represents the manufacturing process of Deluxe birdfeeders and Super Duper birdfeeders in different rows. From top to bottom, rows are arranged for Deluxe birdfeeders and Super Duper birdfeeders, respectively. Each row begins with an inverted triangle containing the dollar amount for the raw materials that go into the process. An arrow that emerges from the triangle is followed to the right by a series of rectangles for each step in the process. Each rectangle contains the step number, station name where that step takes place, and duration in minutes for that step. Between steps 2 and 3, each process has a purchased part added to the flow as indicated by an inverted triangle with the dollar amount for the purchased part inside. The final step in each process is followed by an arrow to a summary process that shows the product name, price per unit, and demand in units per week for that product. For the Deluxe birdfeeder, a value of $14 is displayed inside the triangle. For Step 1, Station Z is used and the step takes 22 minutes. For Step 2, Station Y is used and the step takes 13 minutes. After Step 2, an additional purchased part costing $7 is included in the flow. For Step 3, Station X is used and the step takes 13 minutes. The final arrow points to summary process that reads Product: Deluxe, Price: $74 per unit, and Demand: 69 units per week. For the Super Duper birdfeeder, a value of $5 is displayed inside the triangle. For Step 1, Station X is used and the step takes 22 minutes. For Step 2, Station Z is used and the step takes 9 minutes. After Step 2, an additional purchased part costing $9 is included in the flow. For Step 3, Station Y is used and the step takes 15 minutes. The final arrow points to summary process that reads Product: Super Duper, Price: $72 per unit, and Demand: 84 units per week.
Step 3Step 3Station XStation YProduct: DeluxeProduct: Super Duper(13 min)(15 min)Price: $74/unitDemand: 69 units/wkDemand: 84 units/wkPrice: $72/unit
x y graph
Part 2
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:
enter your response here
units/week,
Super Duper:
enter your response here
units/week.
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