Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of four departments (Departments 1 through 4). Both labor and machine times are applied to the products in each of the four departments. Neither machines nor labor can be switched from one department to another.

Bakkers management is planning its production schedule for the next several months. There are labor shortages in the community. Some of the machines will be out of service for overhauling. Available machine and labor time by department for each of the next 6 months is listed below.

	Department
Monthly Capacity Availability	1	2	3	4
Normal machine capacity in machine hours	3,500	3,500	3,000	3,500
Capacity of machines being repaired in machine hours	(500)	(400)	(300)	(200)
Available machine capacity in machine hours	3,000	3,100	2,700	3,300
Labor capacity in direct labor hours	4,000	4,500	3,500	3,000
Available labor in direct labor hours	3,700	4,500	2,750	2,600

Labor and Machine Specifications per Unit of Product
Product	Labor and Machine Time
611	Direct labor hours	2	3	3	1
	Machine hours	2	1	2	2
613	Direct labor hours	1	2	--	2
	Machine hours	1	1	--	2
615	Direct labor hours	2	2	1	1
	Machine hours	2	2	1	1

The Sales Departments forecast of product demand over the next six months is presented below.

Product	Monthly Sales Volume (Units)
611	500
613	400
615	1,000

Bakkers inventory levels will not be increased or decreased during the next six months. The unit price and cost data valid for the next six months are presented below.

	Product
	611	613	615
Unit selling price	$196	$123	$167
Unit costs:
Direct material	$ 7	$ 13	$ 17
Direct labor:
Department 1	12	6	12
Department 2	21	14	14
Department 3	24	--	16
Department 4	9	18	9
Variable overhead	27	20	25
Fixed overhead	15	10	32
Variable selling	3	2	4 A: Determine whether the monthly sales demand for the three products can be met by Bakker Industries factory. Use the monthly requirement by department for machine hours and direct labor hours for the production of Products 611, 613, and 615 in your calculations. B: If Bakker chooses to maximize contribution margin through the bottleneck operation, what total contribution amount will the company achieve? Support the schedule with appropriate calculations, and present a schedule of the contribution to profit that would be generated by the production schedule selected. If Bakker chooses to maximize throughput margin, what total throughput margin will the company achieve? Support the schedule with appropriate calculations, and present a schedule of the contribution to profit that would be generated by the production schedule selected. C: