only question #8. A-C

Applying the Theory of Constraints to Product Mix Decisions b. What is the profit if the bottleneck method advocated by Troy is used for selecting the product mix? &. The senior management at Canine Kernels Company (CKC) mentioned in problem 4 is concerned with the existing ca- pacity limitation, so they want to accept the mix of orders that maximizes the company's profits. Traditionally, CKC has utilized a method whereby decisions are made to produce as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. Troy Hendrix, the newly hired production supervisor, is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix c. Calculate the profit gain, both in absolute dollars as wel as in terms of percentage gains, by using TOC principles for determining product mix. 9. Yost-Perry Industries' (YPI) senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the tra- ditional method, which is to accept as much of the highest contribution margin product as possible (up to the limit of its demand), followed by the next highest contribution mar- gin product, and so on until all available capacity is utilized. Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the TOC and the bottleneck-based method for scheduling. He believes a. What is the profit if the traditional contribution margin method is used for determining CKC's product mix? Applying the Theory of Constraints to Product Mix Decisions b. What is the profit if the bottleneck method advocated by Troy is used for selecting the product mix? &. The senior management at Canine Kernels Company (CKC) mentioned in problem 4 is concerned with the existing ca- pacity limitation, so they want to accept the mix of orders that maximizes the company's profits. Traditionally, CKC has utilized a method whereby decisions are made to produce as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. Troy Hendrix, the newly hired production supervisor, is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix c. Calculate the profit gain, both in absolute dollars as wel as in terms of percentage gains, by using TOC principles for determining product mix. 9. Yost-Perry Industries' (YPI) senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the tra- ditional method, which is to accept as much of the highest contribution margin product as possible (up to the limit of its demand), followed by the next highest contribution mar- gin product, and so on until all available capacity is utilized. Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the TOC and the bottleneck-based method for scheduling. He believes a. What is the profit if the traditional contribution margin method is used for determining CKC's product mix