Bainona Company makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.

1) Which machine is the bottleneck operation? Explain.

2) Using the traditional method, in what sequence should the fixtures be scheduled for production?

3) Using the traditional method, what is the optimal product mix?

4) Using the traditional method, what is the profit if Bainonna Company manufactures the optimal product mix?

5) Using the bottleneck method, in what sequence should products be scheduled for production?

6) Using the bottleneck method, what is the optimal product mix?

7) Using the bottleneck method, what is the profit if the company manufactures the optimal product mix?

\begin{tabular}{|c|c|c|c|c|c|} \hline & Fixture & W & X & Y & Z \\ \hline \multirow{2}{*}{ProcessingTime} & Machine 1 & 10 & 5 & 20 & 15 \\ \cline { 2 - 6 } & Machine 2 & 15 & 10 & 5 & 5 \\ \hline \multirow{3}{*}{MinutePerFixture)} & Machine 3 & 10 & 15 & 5 & 5 \\ \cline { 2 - 6 } & Machine 4 & 5 & 10 & 10 & 10 \\ \hline \end{tabular}