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Fluffy Head Ltd manufactures two types of pillows: Feather Pillows and Herbal Pillows. Each pillow requires three activities: Sewing, Filling and Bagging. Sewing requires a
Fluffy Head Ltd manufactures two types of pillows: Feather Pillows and Herbal Pillows. Each pillow requires three activities: Sewing, Filling and Bagging. Sewing requires a few machines and has been identified by the company's operations manager as the binding constraint. The weekly machine capacity of Sewing is 2,400 minutes. Each Feather Pillow requires 20 minutes of Sewing time. 10 minutes of Filling time, and 5 minutes of Bagging time. Each Herbal Pillow requires 25 minutes of Sewing time, 16 minutes of Filling time, and 6 minutes of Bagging time. The weekly demands for Fluffy Head pillows are 80 Feather Pillows and 50 Herbal Pillows. Feather Pillows sell for $90 per unit and requires $65 direct materials per unit. Herbal Pillows sell for $60 per unit and requires $20 direct materials per unit. In addition, Fluffy Head's weekly operating expense is $2,500. Required: Question 3 According to the Theory of Constraint, how many Feather Pillows should Fluffy Head make? Answer: units Question 4: According to the Theory of Constraint, how many Herbal Pillows should Fluffy Head make? Answer: units Question 5 Ignore your answers to Question 3 and 4 and assume that Fluffy Head's optimal product mix is 45 Feather Pillows and 50 Herbal Pillows. What is its weekly profit ($)? Answer: $
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