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Exercise 4-50 Theory of Constraints (LO 4-5) CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is
Exercise 4-50 Theory of Constraints (LO 4-5) CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows: Building 1 (Desks) 400 400 500 400 Monthly capacity Monthly production The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $270 each and have a variable cost of $115 each. Required: a. Is there a bottleneck at CompDesk in Building 1 or Building 2? Building 1 Building2
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