Chandler Corporation is currently producing several

products, including both custom and standard designs. It

has received requests for two new products: swimming pool

shades and landscape trellises. It is considering whether

to produce either or both of these products. Based on the

projections in Exhibits $1$ to $3$ describing the current capacity

and required capacity needs for the new products, complete

the following requirements:Theory of Constraints:

a$.$ Assuming material is the only truly variable cost, find

the throughput margin per unit for:

i$.$ One pool shade

ii$.$ One trellis

b$.$ Assuming the powder coating process is the binding

constraint and additional capacity is difficult or too

costly to purchase, determine which product Chandler

should be making first. Explain how and why you came

to this conclusion. Also, show your computations to

support your conclusion.

c$.$ Assuming the powder coating process is the binding

constraint and additional capacity is difficult or too

costly to purchase, determine what mix of products

should be made with the existing excess capacity.

d$.$ Determine the incremental throughput margin Chandler

would earn if it sold the mix you determined in $3$c$.$Exhibit $1.$ Existing Capacity Available and Used and Capacity Costs $($Annual$)$

Exhibit $2.$ Resource Needs for Potential New Products

Exhibit $3.$ Purchase Price of Additional Capacity